Counterfeit Hoverboard Battery Could Cost Amazon $30 Million

Photo of Paul Ausick
By Paul Ausick Updated Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Counterfeit Hoverboard Battery Could Cost Amazon $30 Million

© Wikimedia Commons

[cnxvideo id=”655424″ placement=”ros”]In January of last year, a $1 million home in Nashville was destroyed when a hoverboard purchased from Amazon.com Inc. (NASDAQ: AMZN) caught fire. The family’s father had to rescue two of his children from the blaze.

In October, the family filed a lawsuit against Amazon accusing the online retailer of knowingly selling a dangerous product and seeking $30 million damages. The hoverboard was sold by an Amazon reseller named “W-Deals,” and, according to The Counterfeit Report, was equipped with a counterfeit Samsung lithium-ion battery.

According to a report in The Tennessean, the lawsuit W-Deals is a “sham organization registered at an apartment in New York City” and has not responded to requests from the lawyers in the case. Under Tennessee product liability law, a seller is responsible if the manufacturer cannot be located.

[nativounit]

The Counterfeit Report noted that Samsung, the alleged maker of the lithium-ion battery that caused the blaze, did investigate:

Samsung officials inspected the hoverboard battery purchased by the family as well as an intact battery from an identical product sold through Amazon’s website. Samsung confirmed that it did not manufacture the lithium battery in the product purchased by the family, and the battery was not manufactured in a manner consistent with Samsung practices and procedures, concluding the battery represented as an “Original Samsung Advanced Battery” on the Amazon listing is counterfeit.

Amazon began pulling some hoverboards from its website in December 2015 after the U.S. Consumer and Product Safety Commission began investigating reports of fires in 10 states related to hoverboard batteries. All major U.S. airlines ban hoverboards from their planes.

[wallst_email_signup]

Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618