Summer Infant reported its 4th Quarter results on Monday—and tucked into the press release of how Summer was doing was this interesting nugget:
The Company agreed to a proposed settlement in January 2012 for a purported class action lawsuit that was initially filed in October 2009. The plaintiffs alleged that the retail packaging of certain video monitor products did not disclose that the signals could be viewed outside the consumer’s home, even though it was disclosed in the instructions accompanying the product. The Company believes that the claims are without merit, but due to the uncertainty associated with the ultimate resolution to the suit, in addition to the legal costs that would be incurred in a protracted legal case, it decided to enter into a proposed settlement. The settlement calls for a total payment of $1.7 million, of which $1.2 million is the responsibility of the Company, with the balance to be covered under existing insurance policies. The Company recorded total expenses of $1.5 million related to the case, which includes the $1.2 million settlement, plus legal and other internal costs.
This issue first came up in a Today show report back in November 2010:
Apparently, your neighbor’s diaper changes aren’t the only thing a Summer video baby monitor can pick up—an Illinois mom picked up video from inside the Space Shuttle Atlantis. Now that’s some impressive range!