HP reaches settlement over alleged printer firmware issues
August 14, 2024
HP Inc. has reached a settlement in principle in a class action lawsuit brought against the company by Mobile Emergency Housing Corp., Track Rat Enterprises, Inc., and David Justin Lynch, who represented a class of plaintiffs.
The lawsuit, filed in the Northern District of California, centred on allegations that HP’s printer firmware updates were designed to prevent the use of third-party ink cartridges, causing significant disruption to businesses and individuals who relied on cost-effective alternatives to HP’s branded ink.
The plaintiffs claimed that HP’s actions constituted unfair business practices, leading to significant financial losses. They sought damages on behalf of all similarly affected customers, arguing that HP’s firmware updates were implemented without proper notification and led to the malfunctioning of printers when non-HP cartridges were detected.
After nearly four years of litigation, both parties have agreed to a settlement in principle, subject to the finalisation of a full settlement agreement and the approval of the court. The proposed settlement would bring an end to the cross-motions for summary judgment and suspend all pending motions in the case, including those related to the key issues of liability and damages.
The settlement terms have yet to be disclosed, but the parties are expected to notify the court by 20 September 2024, on whether a full agreement has been reached. If so, a motion for preliminary settlement approval will be filed by 11 October 2024.
The case, initially filed in December 2020, has drawn attention to the practices of major tech companies in restricting the use of third-party accessories and components, a practice that critics argue stifles competition and harms consumers. The outcome of this settlement could have significant implications for HP and the broader industry, potentially leading to changes in how such companies manage firmware updates and customer communications.
Our take on this: The resolution of this case marks a significant moment in the ongoing debate over consumer rights in the tech industry. HP’s decision to settle, while not admitting wrongdoing, reflects the complexities of balancing corporate interests with consumer protection. The final approval of the settlement will be a critical moment for all parties involved, as it could influence future business practices and legal strategies across the industry.
Categories : Around the Industry
Tags : Class Action Firmware HP Inc Legal Settlement Third-Party Supplies
