CLASS ACTION: LG Sold Defective Washing Machines To Customers, Allstate Insurance Holder Suffers Massive Home Damage
Insurer Allstate Insurance is suing LG Electronics USA, Inc. after a faulty LG washing machine has accidentally flooded the home of one of their customers, which ended up costing Allstate almost $100,000.
Allstate Customer’s LG Washing Machine Causes $100k-worth Of House Damages
According to reports, Allstate Insurance contended that LG Electronics USA, Inc. knows very well that they were offering defective washing machines when Allstate Insurance policy owner Burt Newsome bought a new washing machine for his home in Alabama. Newsome reportedly bought the LG washing machine model WM2487HRMA for personal household use.
However, Allstate shared that Newsome reported that his home suffered from flooding after the LG washing machine he bought malfunctioned. The homeowner only paid $3,000 for the damages caused by the incident, while Allstate Insurance ended up covering the rest of the payments for the home’s damages per their home insurance contract with Newsome.
It is said that the flooding was caused by the LG washing machine’s faulty control board. In the class-action lawsuit, Allstate argued that LG Electronics USA sold their LG washing machines knowing that they have defects.
LG Knowingly Sold Faulty Washing Machines?
In fact, many customers have also reported about the problems with their LG watching machines. This is not the first time LG was embroiled in controversy for their allegedly defective washing machines.
It is noteworthy that in the past, LG was called out for their washing machines, reportedly having damages and water leakage. There were also reports that their LG products formed molds and had a stench odor after usage. LG faced separate class-action lawsuits concerning the issues above.
Allstate Insurance is suing LG Electronics USA for its alleged negligence, breach of warranty, and failure to warn customers. The insurance company is also taking LG to court for their alleged violations of the state of Alabama’s consumer protection statute.
Allstate is seeking to have LG pay for the almost $100,000 bill they have paid up in relation to the damages caused by the defective washing machine on the insurance policyholder, Newsome’s home.
About LG Electronics USA, Inc.
Based in Englewood, New Jersey, LG Electronics USA, Inc. is the US counterpart of the South Korean consumer electronics brand LG. The company is responsible for the manufacturing and distribution of many of LG’s consumer electronic items ranging from home refrigerators, dryers, washing machines, air conditioners, and the like.
Editor’s Note on LG Defective Washing Machines Class Action Lawsuit 2021:
This class action report details the latest legal clash between two companies, namely Allstate Insurance and LG Electronics USA. The duo is locked in a legal battle after Allstate accused LG of selling one of its insurance policyholders a defective washing machine that damaged their home.
Case Name(s) & No.(s): Allstate Insurance Company v. LG Electronics USA, Inc., et al.; Case No.: 2:21-cv-00942-KOB
Jurisdiction: Circuit Court of Jefferson County in Alabama
Products/Services Involved: LG washing machine in model WM2487HRMA
Allegation(s): LG knows that the washing machine products it sold in the market were defective.
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