Lenovo Spyware Defendant Superfish Settles for $1 Million

Superfish Inc., a software company that specializes in online advertising, settled its portion of a large class action lawsuit accusing Superfish and computer manufacturer Lenovo of breaking privacy and consumer protection laws. Superfish promises to pay $1 million, and help in the continued lawsuit against Lenovo.

The Lenovo Superfish spyware class action lawsuit alleges that starting in August of 2014, Lenovo pre-installed the Superfish “VisualDiscovery” software on over 800,000 of its new computers, spanning 40 different models. Plaintiffs assert that the Superfish software is “spyware,” because it allows the company to track what consumers are doing online without the consumer’s knowledge or permission. That information is used to target unwanted pop-up advertising to the user, according to the plaintiffs.

According to one of the class action lawsuits, “The software…was designed by Superfish to intercept secure Web connections between the user’s computer and Web sites and inject content, such as unsolicited ads, into those connections so that they would display on the user’s screen.”

News of the Superfish “VisualDiscovery” spyware being pre-loaded on Lenovo computers was first reported around February of 2015, and multiple class action lawsuits were filed in short order. In June of 2015, the cases were consolidated into one multidistrict litigation in the U.S. District Court of Northern California.

The plaintiffs in the consolidated case assert that Lenovo and Superfish did not disclose the spyware to purchasers of Lenovo computers, violating both federal and state privacy laws. In addition, the class action claims that the spyware slowed down computers and potentially created problems with user’s online security, in violation of consumer protection laws.

“Relying on Spyware as the key to getting inside Plaintiff’s computer and learning her Internet browsing habits, Defendants invaded Plaintiff’s privacy and interfered with Plaintiff’s right to use and enjoy her computer,” one plaintiff stated in her complaint.

On February 11, the Lenovo spyware class action plaintiffs together with Superfish filed their potential settlement with the court. In the settlement agreement, Superfish agrees to pay $1 million to a Class of “all who purchased a Lenovo computer in the United States on which VisualDiscovery was installed by Lenovo.” The plaintiffs and Superfish claim that the relatively low dollar amount of the settlement is necessary given Superfish’s current financial situation and business prospects.

In the settlement agreement, Superfish also promises to assist the plaintiffs in their continued lawsuit against Lenovo, by giving the plaintiffs access to over 2.8 million additional files and providing Superfish witnesses for a potential trial.

Rather than seek approval of the class action settlement now, the plaintiffs and Superfish requested that the court suspend the case against Superfish. The Lenovo Superfish spyware class action plaintiffs assert that they will seek Class certification soon, which will require notice to all potential Class Members. The plaintiffs argue that it will save time and money if they only have to send out one notice to potential Class Members, instead of two.

More information about the Lenovo Superfish class action settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

The co-lead law firms for the plaintiffs in the MDL are Pritzker Levine LLP, Girard Gibbs LLP, and Cotchett, Pitre & McCarthy, LLP.

The Lenovo Superfish Spyware Class Action Lawsuit is In re: Lenovo Adware Litigation, Case No. 5:15-md-02624, in the U.S. District Court for the Northern District of California, San Jose Division.

UPDATE: On July 22, 2016, plaintiffs filed a motion asking the judge to certify the Lenovo Adware class action lawsuit.

UPDATE 2: On Aug. 19, 2016, Lenovo Inc. opposed the plaintiff’s request to certify the proposed Class.

UPDATE 3: On Oct. 27, 2016, a California federal judge granted class certification for the Lenovo Adware litigation after rejecting some claims. 

UPDATE 4: On Jan. 30, 2018, claims in a class action lawsuit alleging Lenovo preinstalled secret monitoring devices on computers were further trimmed by a federal judge. Lenovo successfully argued that class action claims under New York’s consumer protection laws should be dismissed.

UPDATE 5: January 2019, the Lenovo adware class action settlement is now open.Click here to file a claim.

UPDATE 6: On Nov. 12, 2019, Top Class Actions viewers started receiving checks in the mail worth up to $244.52. Congratulations to everyone who filed a claim and got PAID!