Shimano's crankset legal dispute secures preliminary settlement agreement
The class-action lawsuit against Shimano regarding faulty Hollowtech II cranksets is close to final settlement, with the court issuing a preliminary approval order for the settlement. The proposed settlement includes free replacement of all faulty cranksets, an extra two-year warranty extension for the customers affected by the recall, and a $500 ‘service award’ to each of the 14 named plaintiffs.
The recall initially covered 760,000 cranksets in North America due to safety hazards from crankset separation, with over 4,500 incidents and some injuries reported. Shimano initiated a voluntary recall program in 2023, offering free inspections and replacements for cranks showing signs of failure, reviewed and approved by the US Consumer Product Safety Commission (CPSC).
However, the lawsuit argued that the recall did not cover all affected cranksets and that the replacement cranksets might not fit all bikes. Shimano reports having incurred a loss of roughly $114 million (¥17 billion) related to recall and settlement costs.
The settlement also aims to give retailers additional tools and training to manage the recall process more effectively. Shimano has set aside over $100 million to cover inspection and replacement costs related to this recall.
The affected products include Ultegra FC-6800, FC-R8000, Dura-Ace FC-9000, FC-R9100, and FC-R9100-P. The lawsuit was brought forward by 14 plaintiffs, and it was alleged that Shimano fraudulently concealed information about the faults.
The court’s final approval of the settlement is pending, with an expected decision early next year. Shimano has described the settlement terms as reasonable but has withheld detailed specifics until final court approval is granted.
[1] Shimano Announces Preliminary Settlement in Class-Action Lawsuit Over Faulty Cranksets, Bicycling.com, 28 July 2024. [2] Shimano Recall: Class-Action Lawsuit Settlement Approved, BikeRadar, 28 July 2024. [3] Shimano Recall: What Does the Settlement Mean for Retailers?, BicycleRetailer, 28 July 2024. [4] Shimano Faces Class-Action Lawsuit Over Faulty Cranksets, CyclingTips, 1 October 2023. [5] Shimano Recall: What You Need to Know, Road.cc, 1 October 2023.
1) Despite the ongoing class-action lawsuit about faulty Hollowtech II cranksets, Shimano is also planning to expand its product line, introducing a new line of e-bikes for sports enthusiasts in 2025.
2) Simultaneously with the recall and settlement process of the faulty cranksets, Shimano is boasting about its new sporty e-bike models, hoping to gain back the trust of sports cyclists around the world.
