Osram Sylvania Pays US $30M to Settle Halogen Headlight False Ad Suit

U.S. Magistrate Judge Madeline Cox Arleo has preliminary approved Osram Sylvania US $ 30 million settlement over falsely advertising superiority of halogen headlights to deceive consumers into overpaying, according to a Law360 report.

The ruling will allow millions of class members to submit claims for partial refund of Sylvania’s SilverStar headlights, according to an order filed in New Jersey federal court.  

According to court documents, the company sold more than 60 million replacement headlamps during the class period.

In September 2011, Imran Chaudhri sued the company for misrepresenting the halogen headlights as brighter, offering wider beam angle and providing drivers better visibility on the road than standard halogen headlights. In reality, the company “rigged the process” and committed consumer fraud, court documents noted.

Sylvania failed to disclose to consumers the headlight comparisons were not based on similar testing conditions, alleged Chaudhri. He also noted the headlamps were sold at double the price of halogen headlights.

The case survived Sylvania’s dismissal bid in 2012 before the two sides entered two separate meditation sessions to arriving to the US $ 30 million deal on June 27 this year.

The company has agreed to make changes to headlight packaging to rid some of the challenged claims concerning the products’ performance and lifespan, according to the brief. Chaudhri and six other plaintiffs will be allowed to share an incentive award of up to US $ 25,000.

The court will hold a fairness hearing on March 25, 2015, to weigh granting final approval to the deal. 

Editorial Note: Changes were made in this article on July 21, 2014 for misrepresenting Osram Sylvania SilverStar headlights as LED lights. The car lights involved in the lawsuit are halogen lights.

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