LAWSUITS NEWS & LEGAL INFORMATION
$30M Preliminary Settlement Approved in Sylvania Silverstar Headlamp Consumer Fraud Class Action Lawsuit
San Francisco, CA: A preliminary $30 million settlement has been approved in the consumer fraud class action lawsuit pending against Sylvania. The lawsuit alleges the company made false and misleading claims regarding the effectiveness of its headlights in an effort to boost the sales price and subsequent profits.
Under the settlement terms, millions of class members will be able to submit claims for a partial refund on Sylvania's SilverStar headlights.
Sylvania is the North American business of Osram GmbH. According to court documents, the company sold over 60 million of the replacement headlamps during the class period.
The lawsuit was filed by Imran Chaudhri in September 2011, alleging that Sylvania represented that the headlights are brighter, provide a wider beam and allow drivers to see farther down the road than standard halogen headlights. However, the lawsuit alleges, Sylvania had "rigged the process" and committed consumer fraud.
Specifically, the lawsuit claims Sylvania failed to adequately disclose to consumers that those comparisons aren't based on similar testing conditions. SilverStar headlamps generally sell for roughly double that of halogen headlights.
According to the terms of the deal, eligible class members will be entitled to their pro rata share of the settlement fund with each class member expected to recover around $10. Sylvania also agreed in the deal to alter the headlights' packaging to eliminate some of the challenged claims concerning the products' performance and lifespan. Chaudhri and the six other plaintiffs who later joined the case will share an incentive award of up to $25,000.
A fairness hearing will be held on March 25, 2015. The case is Chaudhri v. Osram Sylvania Inc. et al., number 2:11-cv-05504, in the U.S. District Court for the District of New Jersey.
Published on Jul-14-14
Under the settlement terms, millions of class members will be able to submit claims for a partial refund on Sylvania's SilverStar headlights.
Sylvania is the North American business of Osram GmbH. According to court documents, the company sold over 60 million of the replacement headlamps during the class period.
The lawsuit was filed by Imran Chaudhri in September 2011, alleging that Sylvania represented that the headlights are brighter, provide a wider beam and allow drivers to see farther down the road than standard halogen headlights. However, the lawsuit alleges, Sylvania had "rigged the process" and committed consumer fraud.
Specifically, the lawsuit claims Sylvania failed to adequately disclose to consumers that those comparisons aren't based on similar testing conditions. SilverStar headlamps generally sell for roughly double that of halogen headlights.
According to the terms of the deal, eligible class members will be entitled to their pro rata share of the settlement fund with each class member expected to recover around $10. Sylvania also agreed in the deal to alter the headlights' packaging to eliminate some of the challenged claims concerning the products' performance and lifespan. Chaudhri and the six other plaintiffs who later joined the case will share an incentive award of up to $25,000.
A fairness hearing will be held on March 25, 2015. The case is Chaudhri v. Osram Sylvania Inc. et al., number 2:11-cv-05504, in the U.S. District Court for the District of New Jersey.
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