A proposed $1.2 million settlement could provide cash payments or vouchers to people who purchased MG217 coal-tar shampoo in the United States from January 1, 2021, through June 25, 2026. The benefits are split between a $700,000 cash fund and a $500,000 non-cash fund for product vouchers.
The lawsuit alleges that Lake Consumer Products failed to manufacture the shampoos in accordance with current Good Manufacturing Practices and industry practices concerning benzene levels. Lake denies the claims, denies wrongdoing, and maintains that the products are safe and comply with state and federal regulations. The court has not decided which side is right.
The class covers every formulation of the named shampoos
Eligibility generally extends to anyone who purchased any formulation of the covered MG217 coal-tar shampoo products in the United States during the class period. The notice does not limit the class to a particular state or to consumers who experienced a physical reaction.
The lawsuit concerns manufacturing and alleged benzene levels, but a claimant does not need to prove an injury to request the settlement's purchase-related benefit. Consumers should use the product list and claim instructions on the official settlement website to verify that their purchase is included.
Receipts change how the cash benefit is calculated
With valid proof of purchase, a claimant may seek the purchase price for each qualifying product. Without proof, the notice provides up to $7 per qualifying purchase. Both cash calculations are subject to possible pro-rata increases or decreases after the administrator knows the number and value of valid claims.
The agreement allows class counsel, at its discretion, to implement a per-purchase cap on no-proof cash benefits. The final cash amount therefore cannot be known from the notice alone, even when a claimant remembers the exact number of products purchased.
Vouchers follow different rules from cash
Claimants may choose a voucher for the MG217 product line instead of cash. The initial voucher is described as a $25 credit, although its value may be reduced if total selections exceed the $500,000 non-cash fund.
If the first distribution does not use the entire voucher fund, additional vouchers may be distributed until the fund is exhausted, with a maximum of $50 in vouchers per claimant. The vouchers do not expire, may be transferred, need not be used in one transaction, and may be combined with other promotions or gift cards.
Proof can allow both cash and a voucher
A claimant with proof of purchase may elect both a cash benefit and a voucher. Without proof, the claim form generally requires choosing the no-proof cash benefit or the voucher rather than receiving both in the initial election.
This makes a receipt or other acceptable purchase record potentially valuable beyond the reimbursement amount. Consumers who still have records should review the official proof definition before filing rather than assuming a store receipt is the only acceptable form.
A signed purchase attestation is still required
Even for a no-proof claim, the settlement does not distribute benefits automatically. The form must include the claimant's name, mailing address, purchase attestation identifying the number of covered products, and a signature under penalty of perjury.
The administrator will review submissions before approving payment or vouchers. Claimants should report purchases accurately and keep copies of any records and the completed form.
The deadline arrives September 24
Claims must be submitted online or mailed by September 24, 2026. The final approval hearing is scheduled for October 15, 2026, at 11:00 a.m. in the U.S. District Court in Easton, Pennsylvania.
Cash and vouchers will be distributed only if the court approves the settlement and it becomes final. Court-approved attorneys' fees, expenses, administration costs, and any service payment will affect the cash fund, while participation levels may change both cash and voucher values. Consumers should file by the deadline and monitor the official website for hearing or schedule changes.