Class counsel in a lawsuit accusing New Balance Athletics Inc. of falsely marketing shoes as “made in the U.S.A.” asked a federal court in California on February 14, 2019, for $650,000 in fees and costs, Law360 reported. The request follows a $750,000 settlement for the class.
The case
California consumers sued New Balance in Dashnaw v. New Balance Athletics, claiming that shoes labeled “Made in USA” contained foreign materials. The case moved to the U.S. District Court for the Southern District of California.
Judge M. James Lorenz first rejected a $750,000 deal as too small for an estimated 1 million class members. He granted preliminary approval of the $750,000 settlement on January 25, 2019.
Settlement terms
- Class members can get up to $10 per pair, up to $50 per person and $100 per household.
- About $200,000 of the fund covers administration costs.
- New Balance agreed to change certain marketing materials and run a compliance and training program for five years.
- A final fairness hearing was scheduled for June 10, 2019.
Under the injunctive terms, for five years, New Balance shoes with less than 95% domestic content must display the “Made in USA” label less prominently, and the company must disclose that its Made in USA collection has a domestic value of 70% or more.
FAQ
How much is the New Balance settlement?
$750,000, with class counsel seeking up to $650,000 more in fees and costs.
How much can buyers get?
Up to $10 per pair, capped at $50 per person and $100 per household.
When was preliminary approval granted?
January 25, 2019.
Source & credit
Source: Rick Archer, Law360: “Attys Want $650K Fees In New Balance ‘Made In USA’ Suit”, February 14, 2019.
Also: Kelley Drye: “Avoid a Misstep with Qualified ‘Made in USA’ Claims”; TINA.org: New Balance Shoes class action tracker.