Samsung Faces Legal Action Over Failed Galaxy Note 7

As the fallout continues from Samsung's failed Galaxy Note 7 smartphone, which was recalled in connection with multiple fires around the world, the South Korean company is facing at least two class-action lawsuits, billions in losses and a massive PR black eye.

In the U.S., three people who purchased the phone on Friday filed a complaint against Samsung seeking class-action status in U.S. District Court for the District of New Jersey. According to the Korea Herald, another 38 plaintiffs in South Korea plan to file suit against the company on Monday.

In the meantime, Samsung is already expecting to face losses of more than $5 billion in connection with the Galaxy Note 7 recall and halt in production. And Bloomberg reported today that executives and employees with Samsung's mobile phone unit are fearing for their jobs.

Recall Offers Exchange or Refund

Launched with great fanfare and rave reviews in early August, the Galaxy Note 7's fortunes quickly soured when numerous owners began reporting problems with their devices overheating and even catching fire. One owner preparing to depart on a flight from Kentucky reported that the phone caught fire in his pocket, and another man in that state said he required treatment for smoke inhalation after a bedroom fire reportedly linked to the phone.

In both cases, those fires were reportedly started by replacement phones provided by Samsung after it began an exchange program for its first batch of devices.

On Oct. 11, the company announced that it would stop producing the Galaxy Note 7. Last week, the electronics giant said it would expand its recall program and would let customers exchange their Note 7s for other Samsung smartphones or return their devices for refunds.

Meanwhile, the U.K.'s Guardian newspaper reported today that some Note 7 owners have complained that Samsung hasn't been...

Comments are closed.