24/7 Insights

• • The biggest recalls of all time had a big impact on company financials. 
  • Many of the companies on this list were able to cover the cost of the recall. 
  • At least one brand went completely bankrupt due to its widespread recall. 
  • Also: 2 Dividend Legends to Hold Forever

Unfortunately, product recalls are a fact of life for consumers and corporations alike. For better or worse, some products, vehicles, or toys are released that ultimately are found to have a defect. As soon as this defect is discovered, any good corporation will issue an immediate recall to protect the public from potential injury or death. 

Looking back over time, some recalls stand out more than others. These are undoubtedly some of the biggest recalls of all time. Tylenol, airbags, and even Ikea dressers are all widely known recalls and will certainly make this list. For the rest of the list, we’re using data from Reddit, SI Live, and Thomas Net to compile a complete set of the biggest recalls of all time in descending order. 

Why Is This Important? 

As one might suspect, anytime a recall takes place, it’s as much of a potential stock hit as a public relations one. In the case of many recalls on this list, the company’s valuations fell significantly, and in at least one case, it left the company bankrupt and out of business. For these reasons, this topic aligns perfectly with 24/7 Wall St. coverage as we look at many public companies impacted by big recalls.  

12. Keurig Coffee Machines

• Recall size: 7.2 million 

While Keurig received some credit for voluntarily recalling over 7 million of its Mini Plus single-serve units, it still had to recall them all. The affected models, K10 and B31, were manufactured between 2009 and 2014. At the time of the recall, Keurig issued a notice asking customers not to use and to stay away from its machines until a fix had been made available. The recall centered around the machines errantly spraying burning hot liquid that could potentially land on someone’s skin, and had received at least 200 reports of this incident taking place. 

11. Toyota and Lexus Recall

• Recall size: 8.1 million 

In 2010, Toyota was yet at the center of another massive recall affecting over 8.1 million Toyota and Lexus models. After receiving multiple reports of floor mats sticking to acceleration pedals, the U.S. Government forced Toyota to recall over 8.1 million vehicles. Sadly, this was only after learning that at least 5 deaths could be attributed to this issue. The resulting recall would cost Toyota at least $2 billion in lost value and another $1.2 billion to settle a lawsuit with the US Justice Department. 

*Editor’s note: A previous version of this story incorrectly stated 89 deaths instead of 5.

10. Zen Magnets

• Recall size: 10 million 

In August 2021, the Zen Magnets and Neoballs Magnets playsets were recalled after complaints started to surface about children swallowing the magnetic balls. Consumers were advised to stop playing with the units immediately after at least two children required surgery to remove the magnets, which resulted in part of their intestines being removed as well. There was also a report of a 19-month-old girl who passed away as a result of swallowing one of the magnets that were part of the Zen sets. 

9. Volkswagen “Dieselgate” 

• Recall size: 11 million 

One of the most expensive recalls in history, “Dieselgate,” as it’s commonly known, is the instance in which Volkswagen is accused of tricking US vehicle emission standards. With more than 11 million vehicles recalled, Volkswagen had to spend around $18.3 billion to buy back vehicles from owners who could no longer drive a vehicle that would not pass US vehicle emission standards, which it had already cheated once before. The Environmental Protection Agency made its determination around Volkswagen’s trickery around September 2015 and forced the recall. 

8. Schneider Electric 

• Recall size: 15 million 

Totaling more than 15 million in volume, electric giant Schneider Electric had to recall surge protectors that would overheat or melt. Starting in October 2013, the recall returned to models produced as far back as 2003, or one full decade before the recall was uninitiated. While Schneider Electric indicates the number of incidents was rare and only occurred in 0.01% of all surge protectors, it doesn’t change the reality that over 700 complaints were received by the Consumer Protection Agency. 

7. Ikea Dressers

• Recall size: 17 million 

One of the most shocking recalls of all time is centered around furniture giant Ikea and its popular Malm dresser lineup. While the issue was first identified in June 2016, it wasn’t until after November 2017 that the recall began in earnest. The focal point of the recall surrounded the Malm dresser lineup, which had tipped over and injured at least 144 children and caused at least eight child fatalities. Ikea reportedly received at least 300 complaints and would settle lawsuits for up to $46 million to the affected families. Still, Ikea is accused of knowing about the problem and failing to notify customers. 

6. Firestone Tires

• Recall size: 23 million

Turning back the clock to the year 2000, Firestone Tire and Rubber Company found itself in a situation where it had to work with Ford to recall over 23 million tires. This occurred in over 19 million vehicles after the tires were said to be responsible for over 271 deaths and 800 injuries. The resulting impact on Bridgestone, the parent company of Firestone, would halve the company’s market value. At the same time, Ford fired many executives who publicly accused both companies of blame. 

5. General Motors Ignition Switches 

• Recall size: 30.4 million 

In one of the largest recalls ever from the automobile industry, General Motors had to recall 30.4 million cars worldwide. Beginning on February 7, 2014, General Motors announced that about 800,000 of its vehicles suffered from faulty ignition switches. This faulty switch could result in the engine shutting off without warning, even while driving. As the weeks passed, GM had to bring the recall to more than 30.4 million cars, extending the recall into June. With over 124 deaths associated with the issue, the recall couldn’t have happened fast enough. 

4. Tylenol 

• Recall size: 31 million 

One of the most prominent recalls in history, Johnson & Johnson Tylenol recalled Tylenol in 1982. At the time, it was one of the most shocking recalls in US history. While the company’s recall of 31 million bottles of Tylenol sent consumers into a frenzy, it remains a textbook study on the ideal way to handle a product recall and come out stronger. Even though it cost J & J over $100 million, the company’s proactive steps no doubt saved the company and the Tylenol brand from failure. 

3. McDonald’s Step-iT Wristband

• Recall size: 33 million 

A big black eye for McDonald’s Corp came in August 2016 when the company issued a massive recall of its Step-iT activity wristband, which was part of a Happy Meal offer. Following more than 70 reports of incidents of burning and seven reports of blisters, the company immediately stopped distributing the wristbands. McDonald’s indicates it had received “limited reports” of skin irritations that “may be associated with wearing the band.” After distributing the wristbands between August 9 and 17th, McDonald’s indicated that many had not been distributed to customers. McDonald’s hoped introducing the wristband would change the perception of Happy Meals as unhealthy.  

2. Kidde Fire Extinguisher

• Recall size: 37.8 million 

After a series of recalls beginning in September 2014 with smoke alarms, Kidde’s recall troubles went from bad to worse in November 2017. The U.S. Consumer Product Safety Commission issued a recall notice for 134 models of Kidde fire extinguishers after discovering they could fail to discharge correctly when used. The recall involved over 37.8 million fire extinguishers, and it was so deep that it went back to products Kidde made in the 1970s. At least one death has been attributed to the failure. 

1. Takata Airbags

• Recall size: 67 million 

Not only was the recall of Takata’s airbags the largest recall of all time, but it was also the most expensive. As a result, Takata went bankrupt and has since closed up shop. Recalling almost all of the company’s airbags between 2002 and 2015, the recall was spread across 20 carmakers, including Honda, Mazda, Toyota, Subaru, Mitsubishi, and Nissan. Costing the company over $24 billion, it filed for bankruptcy protection in January 2024. 

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