CUSTOMERS who frequent a prominent mall retailer could qualify for cash distributions.
The direct payment opportunity comes after a class action lawsuit was filed against the brand on false advertising claims.
Hot Topic was accused of advertising inaccurate discounts[/caption]
Hot Topic, a pop culture clothing and merchandise brand, was accused in the suit of advertising misleading discounts on certain items.
Plaintiffs claimed the advertisements inaccurately represented the true savings customers would get, allegedly violating laws in California and Oregon, specifically.
While Hot Topic has not admitted any wrongdoing in the case, it recently agreed to a settlement pot of $12.5 million to resolve the claims and avoid further legal costs.
Affected customers will see payouts from the pot, but only if they meet four requirements.
ELIGIBILITY
First, they must’ve purchased at least one or more items from Hot Topic’s website, not brick-and-mortar locations.
Second, they must’ve made those purchases as either Oregon or California residents.
Transactions for California residents must’ve been made between March 15, 2019, and July 29, 2024.
For Oregon residents, the timeline is between August 25, 2022, and July 29, 2024.
FILING A CLAIM
No receipts or documentation for proof of purchases are required by the Hot Topic customers who submit a claim.
They can still be included for those who wish to add them.
Forms can be completed on the settlement website created for the case, where customers must enter their Class Member ID.
Those who can benefit from the settlement should’ve already gotten a notice by mail or email with their Class Member ID.
Anyone missing that information can contact the settlement administrator for more details and assistance.
What’s a class-action settlement?
Class action lawsuits offer groups of people, or ‘classes,’ a way to band together in court.
These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.
When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.
These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
The deadline to file a claim form is coming up on October 27, 2024.
An exclusion and objection deadline already passed on September 27.
PAYMENT
A payment amount for the Hot Topic false advertising settlement is set at $10 per eligible claimant.
They can choose to get the money through a check, electronic payment, or store credits on Hot Topic’s website.
A final hearing for the case is set for November 4.
The funds will likely be distributed sometime soon afterward.
Several other retailers have faced class action lawsuits this year.
Walmart agreed to a $3.8 million pot in an overcharge settlement.
Costco also sent out payments to customers in a $3.875 million overcharge settlement.
