Samsung will pay $865 million to resolve the U.S. Department of Justice over allegations that the Korean company conspired with rival LG to sell an air-conditioning device that failed to meet safety standards.
The deal includes a settlement of a class-action lawsuit brought by consumers who said they purchased a Samsung air-cooled Samsung Galaxy Note 7 battery-powered heater in 2015 that did not meet safety requirements, according to a copy of the agreement obtained by Bloomberg.
Samsung will pay the $8 billion, or about 6% of its current $1 billion sale price for the heater, which was made by LG Electronics Corp. The company agreed to pay LG a total of $8.9 billion in 2018, including $1 in cash.
LG Electronics agreed to settle the case with the Justice Department in December.
A jury found that Samsung manufactured the heater without a federal safety requirement and that it did not provide the required level of testing to ensure the device was safe.
Samsung will also pay $300 million to settle a separate complaint alleging that it conspired to sell the heater that was sold to consumers in New Jersey and California.
In a statement, Samsung said it had “been working diligently to develop the new device, and to address any concerns raised about it.”
“We continue to work closely with LG and will provide all of our customers with the latest information on the product’s availability and safety,” the statement said.
Shares of Samsung closed up more than 1% in early trading Thursday after the news was announced.
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