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Can a recall prevent a class action product liability suit?

On Behalf of | Dec 2, 2022 | Class Action Lawsuits

Your company has to balance operating expenses against the revenue it generates through sales. The products that you release to the public have to be profitable when you consider what it takes in terms of materials and manpower to manufacture them. There are also design costs to consider, which can substantially add to the overall expense to release new products to the public. 

Sometimes, products end up being released when they still have a few issues for the manufacturer to address. If your company has a detective product on the market, will a voluntary recall prevent a class action product liability lawsuit? 

Recalls can minimize lawsuit risk

The more consumers there are affected by a product defect, the greater the chances that they could band together and bring a class action lawsuit against your company. The sooner you identify the potential issue and initiate a recall to address it, the fewer consumers will likely have a valid claim in civil court. 

Especially when you can show that you directly reached out to all known buyers to warn them of the issue and the consumers failed to take action, the recall can reduce the risk of your company ultimately bleeding to blame when someone gets hurt using one of your products. 

Of course, recalls can be very expensive. They can also do a lot of damage to a company’s reputation. As you prepare for a recall, you have to consider how best to protect your company from the expenses and reputational damage that could result. Mistakes during a recall can undermine the benefits it will generate for your company. 

Having the right support when you believe your company may be vulnerable to a class action lawsuit can reduce the risk of a large, expensive legal claim against your business in the future.