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CASE STUDY

Gold, et al. v. Lumber Liquidators, Inc.

United States District Court for the Northern District of California

Case No. 14-cv-05373-RS

Case Type
Consumer
Distribution Rounds
Multiple
Administration Duration
5.5 Years

Case Type

Distribution Rounds

Administration Duration

Consumer
Multiple
5.5 Years

Case Background

This consumer class action involved allegations that Lumber Liquidators’ Morning Star Strand Bamboo Flooring products were defective and prone to premature failure, including warping, cracking, delamination, and other performance issues inconsistent with the product’s advertised durability and warranty life. The plaintiffs asserted that the flooring was marketed as premium and moisture-resistant, yet many consumers experienced deterioration soon after installation. Lumber Liquidators denied all wrongdoing but agreed to a nationwide settlement that offered compensation through cash payments and vouchers redeemable for replacement products.

Our Goal

The administrator's responsibility was to implement a comprehensive notice and claims administration program that satisfied the settlement’s due-process requirements while maintaining a balanced approach with digital outreach and LL’s brand integrity.

The administration required:

  • Extensive claimant validation procedures, including rigorous verification of proof of purchase, proof of damages, and eligibility documentation;
  • A complex, multi-tiered claims process that ensured accuracy, fraud prevention, and equitable distribution;
  • Implementation of a broad notice campaign that effectively informed class members while safeguarding the defendant’s concurrent marketing interests — specifically, avoiding keyword competition or advertising overlap with Lumber Liquidators’ ongoing promotional campaigns for similar flooring products; and
  • Maintenance of transparent communication with class members and the Court to ensure compliance with Rule 23 standards and the principles of due process.

The CPT Group Solution

CPT Group deployed a structured, multi-channel administration strategy tailored to meet the settlement’s complexity and long duration.

Key components included:

  • Direct Notice Distribution: Targeted email and mail notice to verified consumers to ensure primary outreach effectiveness.
  • Supplemental Notice Campaign: Digital advertisements, a nationwide press release, print publication notice, a dedicated settlement website, and a toll-free hotline, all designed to expand reach while carefully avoiding overlap with the defendant’s paid search and marketing initiatives.
  • Advanced Claims Validation: A documentation-intensive workflow requiring detailed submission and review of proof-of-purchase and proof-of-damage materials to ensure accurate and fair benefit allocation.
  • 5.5-Year Administration Oversight: CPT managed the settlement through multiple rounds of claims evaluation and benefit distribution, including ongoing claimant support, iterative review cycles, and repeated disbursement phases.
  • Payment Execution: Valid claimants received either paper checks or store-credit vouchers, depending on the nature of their approved claims and the terms of the settlement.

This long-term, multi-phase administration required sustained coordination, data integrity management, and continuous quality control throughout the settlement's lifecycle.

Results

CPT Group successfully navigated one of the more complex consumer product settlements in its category. The notice campaign achieved nationwide reach through integrated channels while maintaining compliance with marketing restrictions involving the defendant’s brand. CPT’s rigorous documentation review process ensured fair adjudication of claims, and the multi-year, multi-round distribution schedule was executed with precision, transparency, and complete adherence to court-approved settlement terms.

Key Metrics

Settlement Type
Consumer Product – Defective Bamboo Flooring
Administration Duration
5.5 Years
Distribution Rounds
Multiple
Notice Methods
Mail, Email, Digital Ads, Press Release, Website, Hotline
Claims Requirements
Proof of Purchase & Proof of Damages
Claims Submission
Electronic & Hard Copy
Payment Types
Paper Checks & Store-Credit Vouchers
Marketing Objective
Avoid SEO/Paid Search Interference with Defendant
Administration Focus
Due Process, Data Integrity, Multi-Year Oversight

Visual Summary

CONTACT US

CPT Group can simplify your Class Action Administration

We’ve been a trusted leader in class action administration since 1984 — appointed by major courts to manage over 7,000 cases, serve more than 250 million class members, and disburse billions in settlements.

REQUEST A QUOTE
CONTACT US

CPT Group can simplify your Class Action Administration

We’ve been a trusted leader in class action administration since 1984 — appointed by major courts to manage over 7,000 cases, serve more than 250 million class members, and disburse billions in settlements.

REQUEST A QUOTE