Federal Court Strikes Down Proposed "Coupon" Settlement Over Sharper Image Air Purifiers

January 07, 2008

PALM BEACH GARDENS – MIAMI, FLA—Miami Federal District Court Judge Cecilia M. Altonaga recently rejected a proposed class action settlement involving Sharper Image’s “Ionic Breeze” air purifiers, deeming it “a poor settlement with weak parties”—an opinion supporting the arguments made by Public Justice of Washington, D.C., and other objectors in the case. The proposed settlement would have resolved the claims of over 3 million consumers nationwide that own Ionic Breeze air purifiers, which Consumer Reports has stated are ineffective and pose serious health risks because of ozone emissions.

Under the denied settlement, Shaper image would have provided a $19 coupon to consumers who purchased the Ionic Breeze, which could be redeemed off the sale of another Sharper Image branded product. It also gave class members the right to obtain an "OzoneGuard" that may or may not have ameliorated some of the adverse health effects associated with use of the Ionic Breeze.

The court agreed with the objectors’ position that the terms of the settlement itself were unfair. The court found that the coupon—the primary form of relief offered by the settlement—fails to disgorge “any wrongfully obtained gains.” The court concluded that the settlement, “in which Class Counsel receive close to $2 million in fees and class members are given a $19 coupon, is below the range of recovery in which a settlement of this case may be considered fair.”

“We’re thrilled that the court has refused to approve a settlement that offered so little in value to consumers for purchasing these ineffective and allegedly hazardous Ionic Breeze machines,” said lead counsel Amy Radon, Public Justice’s Goldberg, Waters & Kraus Fellow. “The court agreed that the best interests of the class were not served by this settlement, and that the class deserves more in light of the millions of dollars Sharper Image has made from the sale of these machines.”

The proposed settlement arose out of a national controversy regarding adverse health effects associated with the Ionic Breeze, which have been bought by over 3 million consumers nationwide. In 2003 and 2005, Consumer Reports reported that the "air purifiers" were ineffective and emitted harmful levels of ozone that can aggravate breathing problems. Those reports prompted several lawsuits against Sharper Image. If the settlement had been approved, it would have put an end to all class-wide litigation involving economic injuries caused by the devices.

Public Justice and the other objectors had argued that, because a competing nationwide class action was poised to go to trial in California, class counsel in the Florida case were under strong pressure to settle on Sharper Image’s terms. The court agreed, and noted that various improvements the parties made to the settlement in the months prior to the fairness hearing were “the result of the strenuous and well-presented arguments of the objectors, rather than an informed arms-length negotiation process undertaken by well-positioned counsel.”

The hearing on this matter was held August 16, 2007, where Public Justice presented the objections to this settlement on behalf of objecting class member La Sarmiento. Counsel for Ms. Sarmiento consisted of cooperating counsel Ted Leopold and Diana Martin of Ricci~Leopold in Palm Beach Gardens, Florida, Ms. Radon, Public Justice Staff Attorney Leslie Brueckner, and Public Justice Executive Director Arthur Bryant.

Ted Leopold is the managing partner and Diana Martin is an associate in the law firm of Ricci~Leopold, P.A. As consumer justice advocates, the attorneys at Ricci~Leopold pursue justice for those who are harmed by the misconduct of insurance companies and corporations. The firm, founded in 1982, has six attorneys and is headquartered in Palm Beach Gardens, Florida, with offices located at 2925 PGA Blvd Additional information about Ricci~Leopold , P.A. may be obtained by call (561-684-6500) or from the firm’s website at www.riccilaw.com.