Gateway XHD3000 Monitor Defect Class Action Settlement Approved

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Gateway Inc. will pay $1.5 million to settle a class action lawsuit alleging its gaming computer monitors were plagued by defects that caused them to flicker and experience other display issues.

The Gateway class action settlement was approved by U.S. District Judge Dolly M. Gee at a fairness hearing held Friday in California federal court. The deal will provide cash benefits to nearly 5,000 consumers who purchased the allegedly defective Gateway XHD3000 monitors in California. Under the terms of the Gateway class action settlement, Gateway will pay $195 to eligible Class Members.

Plaintiff Mark Lima initially filed the Gateway XHD3000 class action lawsuit in 2009. He alleges he paid more than $1,600 for a Gateway XHD3000 LCD panel monitor and was told that the monitor was protected by a one-year limited warranty.

According to the Gateway class action lawsuit, Lima experienced numerous issues with the monitor, including a green tint on the screen, flickering images, lines across the screen and complete screen failure.

“Far from providing the high-quality display Gateway advertised, the monitor delivered sub-par performance,” the Gateway XHD3000 class action lawsuit said. “After six to seven months, its display began producing abnormal visual artifacts, and would not perform as represented.” Lima claims that troubleshooting with Gateway’s tech support did not resolve the issues.

When he called Gateway customer service, he was told that the warranty period had expired and therefore Gateway would not repair the monitor. Upset by the company’s refusal to repair the allegedly defective monitor, Lima filed the Gateway XHD3000 class action lawsuit, alleging the company violated California’s Consumer Legal Remedies Act and Unfair Competition Law.

“In fact, as known to Gateway but not known to Plaintiff or other consumers, the XHD3000 was defective in its inception and design, and incapable of performing as represented,” the Gateway class action lawsuit alleged. “Because of pre-existing defects, the XHD3000 monitors purchased by Plaintiff and members of the proposed Class did not perform as advertised and failed within a relatively short period of time.”

Gateway’s attempt to compel arbitration was rebuffed in 2012 by Judge Gee, who found the provision unconscionable because it required Lima to reject the protections of the warranty, return the monitor and pay a 15 percent restocking fee to Gateway. The judge found that the warranty terms included significant deterrents that were oppressive to consumers.

Further information about the Gateway XHD3000 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 plaintiffs are represented by Rosemary M. Rivas of Finkelstein Thompson LLP and Gordon M. Fauth Jr. of Litigation Law Group.

The Gateway XHD3000 Monitor Defect Class Action Lawsuit is Mark D. Lima v. Gateway Inc., Case No. 8:09-cv-01366, in the U.S. District Court for the Central District of California.

UPDATE: Details on how to file a claim for the Gateway XHD3000 monitor class action settlement are up! See our detailed claim filing instructions here.