Most of us who have boarded a plane in the last few months have heard the announcement: “Anyone with a Samsung Galaxy Note 7 smartphone, please power down your phone and see the flight attendant immediately.” In September 2016, Samsung Electronics announced a recall of its popular Note 7 amid reports of lithium ion batteries in the devices catching on fire and, in some cases, exploding. Replacement smartphones were issued, but stories of similar problems continued to roll in. An expanded recall soon followed, and Samsung announced in October 2016 that it was discontinuing production and sales of the troubled Note 7.
In mid-October, consumers initiated Waudby v. Samsung, the first class action suit concerning the Note 7 in New Jersey federal court. The complaint alleges, among other issues, that the company’s recall and delay in replacing its flagship smartphone with a comparable device unfairly caused consumers to pay monthly carrier fees for inoperable phones. The lawsuit also includes counts arising out of breach of express warranty, common law fraud, and breach of the duty of good faith and fair dealing. In addition to unspecified monetary damages, plaintiffs seek a court order requiring Samsung to repair, recall and/or replace the phones, and to extend applicable warranties for a reasonable period of time or provide plaintiffs with curative notice of the existence and cause of Note 7′s design defect. Although Samsung offered discounts to Note 7 owners on the purchase of their next smartphone, plaintiffs’ counsel argues that the credit is not sufficient to make consumers whole. Plaintiffs’ counsel chose New Jersey as the venue because the electronic maker’s U.S. unit—Samsung Electronics America Inc.—is based in Ridgefield Park, though counsel seeks to represent a nationwide class of Note 7 buyers.
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