MG217 Shampoo $1.2 Million Benzene Class Action Settlement

Nicole Aljets

Editor & Community Manager

Published

August 19, 2026 11:11 AM

Updated

August 19, 2026

Who can file a claim?

Class members must meet the following criteria:

They purchased any formulation of MG217 coal tar shampoo products in the United States for personal use.
The purchase or purchases occurred between Jan. 1, 2021, and June 25, 2026.
Qualifying MG217 shampoo products include but are not limited to:

MG217 Psoriasis Extra Strength
MG217 Psoriasis Medicated Conditioning 3% Coal Tar Shampoo
MG217 Dandruff Therapeutic Shampoo

How much are class action payments?

Class members have the following benefit options:

Cash payment with proof of purchase: Class members with proof of purchase can submit a claim to receive a pro rata cash payment estimated to be equal to the amount they paid for each qualifying product. The settlement administrator will determine the final payment amount by the total number of claims filed.
Cash payment without proof of purchase: Class members with no proof of purchase can submit a claim to receive a pro rata cash payment of up to $7 per qualifying product. The settlement administrator will determine the final payment amount by the total number of claims filed.
Product voucher: Class members can submit a claim to receive a voucher estimated at $25 for use on future MG217 product purchases. Vouchers do not expire, are transferable and may be combined with other discounts. The settlement administrator will determine the final voucher amount by the number of claims filed.

Class members with proof of purchase can submit a claim for both a cash payment and a voucher.
Class members with no proof of purchase can submit a claim for a cash payment or a voucher but not both.

How to claim a class action rebate

To claim a cash payment or a voucher, class members can file a claim online or print and complete the PDF claim form and mail it to the settlement administrator.

Settlement administrator's mailing address: Lake Consumer Products Settlement, 1060 Broadway, Suite 308, Albany, NY 12204

The claim deadline is Sept. 24, 2026.

Required claim information

All claim forms require the number of qualifying products the class member purchased during the class period, which products they purchased, the date of all product purchases and where they purchased the products.
Proof of purchase claims require supporting documentation, which may include digital or physical receipts, order confirmation, account order history or other proof of purchase.

Payout options

PayPal
Venmo
Zelle
Virtual prepaid card
Paper check mailed to the address provided

Settlement fund breakdown

The $1,200,000 settlement fund includes:

Settlement administration costs: $100,000
Attorneys' fees: Up to $400,000
Service award to class representative: Up to $10,000
Vouchers: $500,000
Cash payments to claimants: Remaining cash settlement funds

Important dates

Deadline to file a claim: Sept. 24, 2026
Deadline to opt out: Sept. 24, 2026
Final approval hearing: Oct. 15, 2026

When is the MG217 shampoo benzene settlement payout date?

The settlement administrator will issue payments to approved claimants after it completes claim processing and the court grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Lake Consumer Products Inc. failed to manufacture its shampoo products in accordance with current Good Manufacturing Practices and industry standards, particularly regarding benzene levels.

Lake Consumer Products denies any wrongdoing and maintains that the products are safe and comply with all regulations. The parties reached a settlement to avoid the expense and uncertainty of further litigation.