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Lake Consumer Products, Inc. has agreed to a $1.2 million class action settlement to resolve allegations concerning the manufacturing practices and potential presence of benzene in its MG217 Coal Tar Shampoo line.
If you purchased MG217 medicated shampoo products to manage psoriasis or severe dandruff, you may be eligible to receive cash compensation or product vouchers under a new $1.2 million class action settlement resolving allegations of improper manufacturing practices and benzene concerns.
The lawsuit targets Lake Consumer Products, Inc., the manufacturer of the widely used MG217 medicated hair care line. Plaintiffs in the suit allege that the manufacturer failed to produce certain coal tar shampoo products in accordance with current Good Manufacturing Practices (cGMPs) and standard industry safety protocols, specifically regarding the potential presence or testing levels of benzene.
Benzene is a chemical compound classified as a known human carcinogen. Exposure to benzene—whether through inhalation, oral consumption, or skin absorption—has been linked to severe health risks over time, including leukemia, bone marrow disorders, and blood cancers. While hair products are designed for external application, consumers rely on manufacturers to ensure that over-the-counter medicated personal care items remain free from chemical contaminants.
Lake Consumer Products denies all allegations of wrongdoing, asserts that its medicated shampoos are completely safe and compliant with federal regulatory standards, and maintains that it satisfied all legal guidelines. The court has not ruled on whether the company committed any legal violation. Instead, both parties agreed to a $1.2 million settlement to avoid the growing financial expense and lingering uncertainty of prolonged litigation.
The nationwide settlement covers several popular formulations within the MG217 therapeutic line. If you bought qualifying over-the-counter medicated shampoos for personal or household use in the United States, your purchases are eligible for reimbursement.
Qualifying MG217 coal tar shampoo formulations include:
MG217 Psoriasis Extra Strength
MG217 Psoriasis Medicated Conditioning 3% Coal Tar Shampoo
MG217 Dandruff Therapeutic Shampoo
Other variations of MG217 coal tar hair care formulations
To qualify as a settlement class member, you must have purchased any covered MG217 coal tar shampoo product between January 1, 2021, and June 25, 2026.
The total $1,200,000 settlement fund is split between a $700,000 cash fund and a $500,000 voucher fund. How much money or credit you receive depends on the options you choose on your claim form and whether you have kept your purchase receipts.
If you saved physical receipts, digital store order confirmations, or online shopping history showing your purchase of qualifying MG217 shampoo products, you can claim a cash refund equal to the full purchase price paid for each bottle. Final cash payout amounts per bottle may be adjusted upwards or downwards on a pro rata basis depending on the total number of valid claims submitted.
If you bought MG217 coal tar shampoo during the eligible timeframe but no longer have receipts or bank records, you can still file a claim. Consumers without receipts can receive a cash benefit of up to $7.00 per qualifying bottle.
Class members can elect to receive a $25.00 product voucher redeemable toward future purchases of any product within the MG217 line. These vouchers carry significant flexibility:
They do not have an expiration date.
They are fully transferable.
They can be combined with existing retail store discount codes, promotions, or gift cards.
They do not need to be spent all in a single transaction.
If you have proof of purchase for your qualifying bottles, you are eligible to claim both a cash refund and a $25 product voucher. If you do not have proof of purchase, you must choose either the cash refund (up to $7.00 per bottle) or the $25 product voucher.
Under federal standards enforced by regulatory bodies like the U.S. Food and Drug Administration (FDA) and state consumer protection laws, companies that manufacture over-the-counter medicated personal care items must follow strict Current Good Manufacturing Practices (cGMPs). These requirements mandate that manufacturers perform rigorous quality testing to prevent harmful impurities—such as benzene, industrial solvents, or bacterial contaminants—from entering consumer products.
When a manufacturer allegedly fails to strictly adhere to cGMP requirements or properly monitor raw ingredients, consumers face potential health risks and financial injury. Class action lawsuits serve as a vital mechanism for everyday people to demand accountability from corporations, ensuring that consumers receive compensation for products that did not meet statutory safety and manufacturing benchmarks.
You are eligible to submit a claim for cash or vouchers if you meet all of the following conditions:
You purchased any eligible formulation of MG217 coal tar shampoo in the United States.
Your purchase was made between January 1, 2021, and June 25, 2026.
You bought the product for personal or household use rather than for commercial resale or distribution.
If you fulfill these criteria, you do not stand alone. Thousands of consumers across the country who purchased these therapeutic shampoos are eligible to participate in the recovery fund.
Taking action is straightforward, and you do not need an attorney to submit your claim form. Approved claimants can select their preferred digital payout method, including direct deposit via PayPal, a virtual prepaid card, or a physical check delivered by mail.
Pay close attention to these important legal dates:
Claim Submission Deadline: You must complete and submit your claim online or postmark your paper claim form no later than September 24, 2026.
Opt-Out or Objection Deadline: If you wish to exclude yourself from the settlement to retain your right to sue the manufacturer individually, or if you wish to file a formal legal objection to the settlement terms, your written request must be postmarked by September 24, 2026.
Final Approval Hearing: The court will hold a final fairness hearing on October 15, 2026, to decide whether to give final approval to the settlement terms. Payments and digital vouchers will be distributed shortly after final approval is granted and any potential appeals are resolved.
To submit your claim online, obtain official claim documents, or contact the settlement administrator, visit the official settlement website at www.MG217ShampooSettlement.com or call the toll-free helpline at 1-888-722-7084.
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