Korea home appliance corporations Cuckoo received a favorable ruling in a consumer class action underway in the United States. The court accepted Cuckoo's argument that the "lawsuit is not legally viable." However, because consumers were given a chance to amend their complaint, there remains a possibility that the legal battle will continue.
On Feb. 2, according to a compilation of reporting by ChosunBiz, the Superior Court of Los Angeles County, California, recently accepted Cuckoo's argument of "failure to meet the requirements for a legally cognizable lawsuit" in a class action filed by local consumers against Cuckoo Rental America and Cuckoo Electronics America.
The court determined that the consumers' complaint, as plaintiffs, was legally insufficient. The court gave the consumers an opportunity to amend and resubmit the complaint and decided to reexamine the case through subsequent procedures.
Cuckoo Rental America and Cuckoo Electronics America are local subsidiaries that Cuckoo established in the United States. In the local market, they are engaged in lending, sales, and distribution businesses focused on household appliances such as water purifiers and air purifiers.
In Jul. last year, local consumers in the United States filed a lawsuit alleging that Cuckoo falsely stated water purifier certifications. Consumers who lent or purchased the products claimed that "Cuckoo's water purifier products were labeled and sold as if they had received California's sales authorization and certification procedures, even though they had not."
Under local regulations, to sell a water purifier with the function of reducing "health-related contaminants," certification must be obtained from an accredited body such as the Water Quality Association (WQA). They took issue with the fact that at the time Cuckoo's products were not listed on the certified product lists of the Water Quality Association or the California State Water Resources Control Board.
Cuckoo said, "This is a matter that can be resolved by supplementing and explaining certain parts, and all registrations and certifications necessary for local operations have been completed," adding, "This is not a lawsuit related to product issues."
In 2024, Cuckoo also engaged in legal disputes in New Jersey. Employees of Cuckoo Rental America and Cuckoo Electronics America filed a lawsuit alleging violations of laws regarding wages and working conditions.
At the time, Cuckoo argued that the lawsuit was improper by invoking arbitration clauses included in individual contracts and sought dismissal and compelled arbitration. The employees later voluntarily withdrew the suit, and the court concluded in Nov. last year that a lawsuit on the same grounds should not be filed, bringing the case to a close.
Procedural issues also emerged as a key point in the consumer class action. If Cuckoo invoked arbitration clauses in the labor case, this time it argued that the lawsuit itself did not stand. It also filed a motion asking that expressions in the complaint that were incorrectly stated by consumers be struck. However, at this hearing the court did not address matters related to expressions and ruled only on whether the lawsuit could proceed.
A legal industry source said, "This decision means the court viewed the plaintiffs' complaint as structurally insufficient to proceed as a class action," adding, "For Cuckoo, it amounts to clearing the first hurdle."
The source added, "If the consumers fail to specifically supplement issues such as damages and causation in their amended complaint, the case is likely to end," and "conversely, if they present a solid argument, there remains room for it to proceed to the merits."