Netgear Class Action Says Company Failed to Disclose CM700 Modem Defect

Netgear Inc. is facing a class action lawsuit alleging the company failed to disclose that its CM700 cable modem has a defect that keeps it from operating properly.

According to the Netgear modem defect class action lawsuit, Netgear marketed the CM700 cable modem as a “reliable high-end modem that is ‘ideal for the fastest Internet speed service plans.’”

However, plaintiff Stewart Williams of Nevada asserts that Netgear failed to disclose to consumers that the CM700 modem contains a defect that affects its functionality.

News reports and customer complaints indicate the modem experiences delays in data communication over the network that slows down users’ internet connections, the Netgear class action lawsuit states. These types of delays are called network latency.

“Excessive latency creates bottlenecks that prevent data from filling the network pipe, thus decreasing the effective throughput and limiting the maximum effective bandwidth of the connection,” the Netgear class action lawsuit states.

The complaints reportedly attribute the network connectivity problem to a component of the modem called the Puma 6 Chipset, which is made by Intel Corporation. Hundreds of complaints have been raised in online forums about issues with modems that contain the Puma 6 Chipset, including Netgear’s CM700 cable modem.

Before deciding to purchase the Netgear modem, Williams says he relied on statements Netgear made about the CM700 modem. Based on Netgear’s representations, Williams says he believed the cable modem would “stay connected with speed and reliability without stutter or lag.”

Williams says he purchased a CM700 modem off Amazon.com in 2017 for personal use and experienced network latency, an experience he says is common for many other consumers who purchased the modem. Even though the network latency issue is allegedly widespread, the modem defect class action lawsuit claims that Netgear has not announced a recall or offered to fix the issue.

“By shipping Modems with this defect, Netgear sold consumer goods that were substantially below the quality generally available in the market, were not fit for the Internet connectivity for which they were generally used, and were not adequately packaged and labeled,” the Netgear class action lawsuit alleges.

According to the Netgear class action lawsuit, the plaintiff did not know at the time of purchase that the Netgear cable modem suffered from high network latency and unreliable internet connectivity.

The Netgear modem defect class action lawsuit asserts claims for violation of the California’s Song-Beverly Consumer Warranty Act, the Consumer Legal Remedies Act, False Advertising Law, Unfair Competition Law, and violation of the Nevada Deceptive Trade Practices Act.

Williams asserts that all consumers who purchased the allegedly defective modem are entitled to a full refund for the purchase price of the modem. He seeks to represent a nationwide Class and a Nevada subclass of consumers who purchased a Netgear CM700 cable modem.

Williams is represented by Robert C. Schubert, Willem F. Jonckheer and Noah M. Schubert of Schubert Jonckheer & Kolbe LLP.

The Netgear CM700 Modem Defect Class Action Lawsuit is Stewart Williams v. Netgear Inc., Case No. 5:17-cv-02096, in the U.S. District Court for the Northern District of California, San Jose Division.