Welspun has agreed to pay up to $36 million to consumers who purchased bed linens, comforters, towels, or pillowcases labeled as either being “Egyptian Cotton” or “Pima Cotton” to resolve a putative class action lawsuit alleging these items are improperly marketed.
If you purchased Welspun home textile cotton products between Jan. 1, 2012 and July 2, 2019, you could get up to $9.20 per item from this class action settlement.
Denise Hansen-Mitchell and her co-lead plaintiffs allege that Welspun falsely advertises its products as being “Egyptian Cotton” and “Pima Cotton” as a way to entice customers into paying more for items than they otherwise would.
Welspun denies that it mislabels its products and further claims that consumers did not pay a “premium” based on any misleading marketing or advertising on its behalf.
The settlement website indicates that the settlement was agreed upon by the defendants and plaintiffs because both parties see a “significant risk” in continuing with the litigation process.
Under the settlement agreement, Class Members who provide proof of purchase along with their Claim Form can receive up to $2.30 for each towel and
pillowcase or up to $9.20 for all other covered products purchased during the Class Period.
Those who are unable to provide a receipt or other documentation with their Claim Form can expect to get up to $1.15 per towel or pillowcase and $4.60 for all other items bought during the Class Period.
In addition, consumers who have already received a refund for a Class product may receive a 10 percent discount voucher or a $5 credit for a future purchase if the Settlement Administrator has their valid mailing or email address.
Under the terms of the Welspun class action settlement, Welspun agrees to injunctive relief that an independent expert has verified is sufficient to validate that home textile products labeled as “Egyptian Cotton” can be traced back to a source in Egypt and that home textile products labeled as “Pima Cotton” can be traced to sources in the Southwestern United States, Australia, Peru, Israel, or to a licensed Supima® grower.
The deadline to object or ask to be excluded from the settlement passed on October 11, 2019.