Macy's $10,500,000 Settlement for Alleged Deceptive CVC Labels

In a recent turn of events, a class action lawsuit involving Macy's Inc. and its affiliates has reached a settlement. The lawsuit, which alleged deceptive labeling of CVC Sheets supplied by AQ Textiles, LLC and sold by Macy's, has resulted in a settlement amount of $10,500,000. The Plaintiffs claimed that they paid more for the CVC Sheets than they were worth due to the alleged mislabeling. The Defendants, however, denied any wrongdoing or liability and asserted that the CVC Sheets were not mislabeled, defective, or misrepresented.

Detailed Analysis of the $10,500,000 Settlement

The settlement amount, agreed upon by both parties, was intended to resolve the dispute and compensate the affected customers. The total settlement fund of $10,500,000 would be used to pay eligible claims, attorneys' fees and costs, incentive payments for the Named Plaintiffs, and administrative expenses. The settlement aimed to provide a fair resolution to the claims raised in the lawsuit, without the need for a lengthy and costly trial.

The distribution of the settlement fund was subject to the approval of the court. The court considered whether the settlement was fair, reasonable, and adequate before granting final approval. If approved, the settlement amount would be distributed among the eligible class members who submitted a valid and timely claim.

Important Dates

• Fairness Hearing: The Fairness Hearing was scheduled for October 20, 2023, at 10:00 am EST.
• Deadline to File a Claim: The deadline to submit a Claim Form was September 06, 2023.
  

Who Are the Class Members?

The Settlement Class includes individuals who purchased one or more CVC Sheets supplied by AQ Textiles, LLC from a Macy's store in the United States or Guam or on www.macys.com between November 8, 2013, and March 24, 2023. These individuals were considered Class Members and were eligible to submit a claim for a portion of the settlement fund.

However, certain individuals and entities were excluded from the Settlement Class. These exclusions included individuals and entities who timely opt-out of the Settlement, Defendants' employees, directors, and officers, the Judge to whom this case was assigned and any member of the Judge's immediate family, and any member of the Court's staff.

What Can Class Members Claim?

Class Members who submitted a valid and timely Claim Form received a cash payment. The amount of the payment depended on the category the Class Member fell into.

• Members Verified from Defendants' Records: These class members received $7.50 per unit of CVC Sheets purchased unless the amount was reduced due to insufficient funds.
• Members Providing Proof of Purchase: Class members who provided proof of purchase through a receipt also received $7.50 per unit of CVC Sheets for which proof of purchase was provided.
• Members Attesting Under Penalty of Perjury: These class members received $2.50, capped at $2.50 per Household. However, if there were insufficient funds remaining from the Settlement Amount after other payments, the payments were reduced on a pro-rata basis.\
  

Is Proof Required to Claim the Reward?

Yes, proof was required to claim a settlement payment. Class Members must have submitted a Claim Form either online through the settlement website or by mail to the Claims Administrator. Proof of purchase through a receipt or attestation under penalty of perjury was required.

Why Is There a Class Action Settlement?

The class action lawsuit was filed by the Plaintiffs alleging that CVC Sheets sold by Macy's were falsely and deceptively labeled, with the thread count listed on the packaging being incorrect. The Plaintiffs claimed that they paid more for the CVC Sheets than they were worth due to this mislabeling. The Defendants, however, denied any wrongdoing or liability and denied that the CVC Sheets were mislabeled, defective, or misrepresented.

The settlement represented a compromise and settlement of disputed claims. The Defendants had agreed to the settlement to avoid the further expense, inconvenience, and distraction of burdensome and protracted litigation, and to be completely free of any further claims that were asserted or could have been asserted in the lawsuit.