HFA Sues SquareTrade for Allegedly Failing to Fully Reimburse Consumers as Promised

Apr 20, 2020

HFA, in partnership with the Gibbs Law Group, have filed a nationwide class action lawsuit against SquareTrade, Inc. ("SquareTrade") for allegedly failing to fully reimburse consumers who purchased the company's protection plans and subsequently qualified for reimbursement from them.

SquareTrade sells service-contract “protection plans” for consumer goods. These protection plans effectively act as insurance. If a covered item breaks within a specified period, SquareTrade must repair, replace, or reimburse the cost of the covered item.

The lawsuit alleges that when items are damaged or break and consumers make claims, if SquareTrade cannot (or will not) repair or replace the item, the company has systemically provided reimbursement in amounts below the product’s purchase price (and below the price at which a comparable product could be purchased). SquareTrade’s decision to consistently deny protection plan holders the full benefits owed has been immensely profitable for the company, to the detriment of consumers.

The lawsuit was filed by Michael Shuman on behalf of himself and a proposed class of individuals that purchased SquareTrade protection plans. Plaintiff Shuman is one of many consumers that have complained about SquareTrade’s routine underpayment. Despite multiple requests by Mr. Shuman for full reimbursement for the cost of his covered item and an appeal letter demanding such payment, Mr. Shuman was not made whole.

Because of SquareTrade’s unlawful conduct, Plaintiff Shuman and the other members of the Class have incurred damages, including in connection with buying the protection plans and then later not receiving reimbursement in the amounts owed. The lawsuit alleges violations of the the Magnuson-Moss Warranty Act, 15 U.S.C. § 2301, et seq., the Song-Beverly Consumer Warranty Act, Cal Civ. Code § 1790, et seq., consumer protection law, and common law duties. Plaintiff, on behalf of himself and other proposed Class members, seeks remuneration as well as injunctive and declaratory relief.

A copy of the lawsuit is available HERE.

If you have any questions concerning this case, or would like to discuss your experience with SquareTrade, please contact William Anderson, Esq. at 303-800-9109 or [email protected].

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