SquareTrade underpaid consumer claims class action settlement

SquareTrade agreed to a class action lawsuit settlement to resolve claims it underpaid consumers for protection plan claims.

The settlement benefits two classes: the Fast Cash Subclass and the SKU-cap Subclass. 

The Fast Cash Subclass includes consumers who submitted a claim for coverage under a SquareTrade protection plan and whose claim was resolved via a Fast Cash payment. 

The SKU-cap Subclass includes consumers who submitted a claim for coverage under a SquareTrade protection plan, resolved the claim with a monetary payment and received less than the amount they should have due to a SKU-cap error.

SquareTrade protection plans are Allstate protection programs that offer replacement reimbursement for items such as smartphones, appliances, TV, furniture and more. According to a class action lawsuit, SquareTrade underpays consumers under protection plans.

Underpayment allegedly occurs due to Fast Cash processes and SKU-cap errors. The Fast Cash payments offered by SquareTrade rely on a replacement cost estimate that is less than is accurate, plaintiffs contend. The SKU-cap error allegedly applies a cap on reimbursement amounts paid to certain consumers. The SquareTrade class action lawsuit maintains both of these practices resulted in underpayment on claims.

SquareTrade hasn’t admitted any wrongdoing but agreed to pay an undisclosed sum to resolve these allegations.

Under the terms of the settlement, SquareTrade agreed to compensate class members for the underpayment of their protection plan claims. 

Reimbursement will vary depending on what class consumers are in and what reimbursement they previously received from SquareTrade. Class members may receive multiple payments if they had multiple SquareTrade protection plans on different items.

Members of the Fast Cash Subclass can receive the difference between the amount SquareTrade reimbursed them as an estimated replacement cost and the cost of replacing the protected item up to the original purchase price. Payments over $35 require supporting documentation. 

Members of the SKU-cap subclass will receive the difference between the amount SquareTrade reimbursed them and the original purchase price of their protected items.

SquareTrade has also agreed to modify its Fast Cash claims process to include additional disclosures and implement measures to eliminate the SKU-cap error. These measures aim to prevent future underpayment of protection plan claims.

The deadline for exclusion and objection is Jan. 30, 2023. 

The final approval hearing for the SquareTrade settlement is scheduled for Feb. 24, 2023. 

In order to receive settlement benefits, class members must submit a valid claim form by Feb. 14, 2023.

Who’s Eligible

The settlement benefits two classes: the Fast Cash Subclass and the SKU-cap Subclass. 

The Fast Cash Subclass includes consumers who submitted a claim for coverage under a SquareTrade protection plan and whose claim was resolved via a Fast Cash payment. 

The SKU-cap Subclass includes consumers who submitted a claim for coverage under a SquareTrade protection plan, resolved the claim with a monetary payment and received less than the amount they should have due to a SKU-cap error.

Potential Award

Varies

Proof of Purchase

Fast Cash Subclass members filing a claim must submit evidence that they purchased a replacement product for a specified amount (exclusive of taxes and fees) at or near the time the claimant filed the claim resulting in the Fast Cash payment or that reflects the price of the replacement product (exclusive of taxes and fees) at or near the time they filed the claim resulting in the Fast Cash payment.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

02/14/2023

Case Name

Shuman, et al. v. SquareTrade Inc., Case No. 3:20-CV-02725-JCS, in the U.S. District Court for the Northern District of California

Final Hearing

02/24/2023

Settlement Website

STSettlement.com

Claims Administrator

Shuman v Squaretrade Inc.
c/o JND Legal Administration
PO Box 91389
Seattle, WA 98111
888-964-1110

Class Counsel

William H Anderson
HANDLEY FARAH & ANDERSON PLLC

Amanda M Karl
GIBBS LAW GROUP LLP

Defense Counsel

Douglas A Winthrop
George Langendorf
Kaitlin Robinson
ARNOLD & PORTER KAYE SCHOLER LLP