Summary: The court has granted final approval of a settlement worth approximately $122 million for Lely A4 dairy farmers, following a previous settlement with DeLaval Holding AB. Class members have the option to either replace their existing milking robot with Lely’s newer A5 model or receive cash relief. The settlement has been praised as an “excellent result” and received overwhelming support from the class. Firm partner Patrick Stueve describes it as another historic nationwide class settlement that will provide financial and operational relief to farmers. The terms of the settlement were agreed upon after three years of litigation, with the option for class members to choose between cash payouts or trading in their A4 for the A5 model. The fight continues on behalf of farmers using the DeLaval V300 milking robot, with a new lawsuit filed claiming similar defects to the previous model.
In a significant development for Lely A4 dairy farmers, a final approval has been granted for a settlement worth approximately $122 million. Last year, a settlement of $55 million was reached with DeLaval Holding AB, and this new settlement marks another historic achievement against a manufacturer of allegedly defective milking robots.
The court granted final approval on September 1, 2023, and the settlement offers class members the choice to replace their existing milking robot with Lely’s newer A5 model or receive cash relief. The majority of the approximately 400 class members participated, and the relief selected by them amounts to around $121,956,000.
The court hailed the settlement as an “excellent result” that provides outstanding relief to the class. The participation in the claims process was unprecedented, with nearly 100 percent of the class members actively taking part. This high rate of participation is far above the average claims rate, highlighting the overwhelming support received by the settlement.
According to Patrick Stueve, a partner at the firm, this settlement is yet another historic nationwide class settlement that will deliver extraordinary financial and operational relief to farmers who purchased the Lely A4 milking robot.
The terms of the settlement were agreed upon after an extensive litigation period of nearly three years. Class members were given two options to choose from during the claims process. They could either receive a share from a cash fund established by Lely, with individual payout amounts based on the number of robots purchased, along with additional cash payments and extended warranties, or they could trade in their A4 robot for Lely’s newer A5 model at a reduced payment.
The settlement also sets the stage for ongoing litigation on behalf of farmers using the DeLaval V300 milking robot. A new lawsuit has been filed against DeLaval Holding AB, DeLaval Holding BV, DeLaval International AB, DeLaval Inc., West Agro, Inc., and Tetra Laval International SA, alleging that their new milking robot, the VMS V300, suffers from similar defects as the original robot covered under the previous settlement. The case is currently pending in the U.S. District Court for the District of Minnesota.
This settlement provides significant relief for Lely A4 dairy farmers and highlights the ongoing efforts to address issues faced by farmers using milking robots. More information about the lawsuit and settlement can be found on the Stueve Siegel Hanson LLP website.
Sources: Stueve Siegel Hanson LLP