Sharp $114 Million Microwave Settlement Gets Final Approval

Jan. 8, 2021, 3:30 PM UTC

Sharp Electronics Corp. and consumers alleging certain microwave ovens are prone to premature failure won a Florida federal court’s approval of a nationwide class settlement plaintiffs say is worth up to $114 million.

Plaintiffs’ lawyers also saw their $3 million fee and expense request approved Thursday by Judge James S. Moody, Jr. of the U.S. District Court for the Middle District of Florida.

Michael Hamm and others alleged certain drawer-style microwave ovens have a flaw that can cause electrical arcing.

The deal allows for replacement of a microwave in the event of a documented arcing claim, or $250 in cash or a $500 Sharp voucher for those who don’t want a replacement.

It also provides up to $150 for reimbursement of labor or costs associated with an arcing claim and up to $200 for class members who elect cash or a voucher, and seek to repair or cover the opening in the cabinetry where the microwave was installed.

The plaintiffs’ expert has valued the settlement at approximately $103 million to $114 million, the court said.

As of Dec. 20, 2020, some 3,553 claims had been submitted, plaintiffs said in a filing seeking final approval.

Only one purported settlement class member submitted an objection, which was baseless and has been withdrawn, the court said. Six have submitted valid opt-outs.

Sharp also agreed to $1,500 service payments for the class representatives. However, after the settlement was tentatively approved, the U.S. Court of Appeals for the Eleventh Circuit held in Johnson v. NPAS Sols., LLC that incentive payments were prohibited.

The appeals court has withheld issuance of the mandate in Johnson after requests for rehearing or rehearing en banc, the court here said.

In light of the Johnson opinion, class representatives aren’t seeking approval of service payments at this time. However, the plaintiffs will seek service payments if the Eleventh Circuit reverses Johnson.

Greg Coleman Law PC, Tycko & Zavareei LLP, and Whitfield Bryson LLP represented the plaintiffs. Riker Danzig Scherer Hyland Perretti LLP and Buckley Law Group PA represented Sharp.

The case is Hamm v. Sharp Elecs. Corp., M.D. Fla., No. 5:19-cv-00488, 1/7/21.

To contact the reporter on this story: Julie Steinberg in Washington at jsteinberg@bloomberglaw.com

To contact the editors responsible for this story: Rob Tricchinelli at rtricchinelli@bloomberglaw.com; Patrick L. Gregory at pgregory@bloomberglaw.com

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