A class-action lawsuit that was filed against LG because of compressor failures in 31 different refrigerator models reached a settlement agreement on Aug. 14. The refrigerators include models with French or side-by-side doors that were manufactured between January 2014 and December 2017. According to the complaint, the refrigerators contain defective compressors that can fail and cause the refrigerators to stop cooling. More than 1.6 million refrigerators may be affected and might stop cooling within a few months after being used.

Settlement agreement

In the settlement agreement, LG did not admit any wrongdoing or that its refrigerators are defective. Instead, the company states that the settlement is simply meant to resolve ongoing litigation. Through the agreement, eligible consumers are eligible for settlements of up to $3,500. The settlement amounts will depend on the types of problems that individual customers experienced with their LG refrigerators.

Who qualifies for a settlement?

People who owned a side-by-side or French-door refrigerator that was manufactured by LG during the qualifying period may be eligible to claim a settlement. The company has released a list of the covered models and serial numbers on the settlement website. Consumers who appear in LG's customer database might also receive prequalification forms from LG in the mail.

Options for compensation

The options for compensation that might be available to you will depend on the number of cooling failure events that you can document. You will need to have receipts to show repairs, evidence of how long it took to complete the repairs, invoices, and other types of evidence.

If you can document at least one cooling failure event, you may be eligible for the following compensation options:
 

• Up to $3,500 for property loss


• Up to $650 to replace the refrigerator


• Up to $1,000 for repairs by LG repair people that were unsuccessful


• Full reimbursement for labor and parts


• Up to $1,000 for repairs that were delayed





 

If you have suffered a cooling failure event but do not have evidence to prove it, you can make a statement under oath and submit it to claim $450 for repairs or replacement costs. All class members will also have an extended warranty period of up to five years from the date of purchase as well as be eligible for LG's Enhanced Customer Care Program.

The Enhanced Customer Care Program

The Enhanced Customer Care Program is a special customer service program that has been established to address the needs of affected class members. Eligible class members can receive faster repairs and more compensation. People who have suffered three or more cooling failure events with their qualifying LG refrigerators can receive from $500 up to the purchase cost. If they suffer repair delays of 30 or more days, they can receive from $400 up to the purchase cost. With proof, they can also receive up to $3,500 for property loss. The program will be ongoing for three years.

How to file a claim

Eligible consumers can file claims on the settlement website. They can complete and submit the claim form electronically or print it out and mail it. If you own an eligible model but have not experienced a cooling failure event, you are still eligible for the extended five-year warranty and participation in the Enhanced Customer Care Program. These benefits will be available to you until Sept. 22, 2021, as long as you submit the Enhanced Warranty claim form to LG.

Deadlines

The deadline to file a claim as a part of the settlement class is Jan. 11, 2021. If you want to opt-out of the settlement so that you can file your lawsuit, the deadline for opting out or objecting to the settlement is Nov. 23, 2020. The court is scheduled to hold the final approval hearing on Dec. 15, 2020. Checks will be issued to eligible claimants after that date.

Consumers expect major appliances that they purchase to work properly. When they fail because of defects, the companies may be liable to pay damages to compensate all class members through a class-action lawsuit. This allows eligible class members to hold the companies responsible for their losses so that they can be compensated. If you have an affect LG refrigerator that has stopped cooling, you might want to file a claim form so that you can recover your settlement amount.