Published
August 20, 2026
This $1.2 million settlement resolves claims that Lake Consumer Products did not manufacture its MG217 coal tar shampoos in line with industry manufacturing standards as to the benzene in them. Anyone who bought one of those shampoos in the United States since January 1, 2021 can claim up to $7 a bottle without a receipt, the full purchase price with one, or a $25 product voucher.
Current Status
Claims are open. Claim forms must be submitted online or postmarked by September 24, 2026 at 11:59 p.m. Eastern Time. The court granted preliminary approval and notice has gone out, but it has not yet decided whether to approve the settlement: the final approval hearing is set for October 15, 2026 at 11:00 a.m. in Easton, Pennsylvania, and the notice warns the hearing can be postponed without further notice. No payments have been issued and no payment date has been announced. If you bought an MG217 coal tar shampoo in the United States on or after January 1, 2021, the step to take now is to file the claim form on the official settlement website before the deadline.
Status
Claims Open
Preliminary approval granted · final approval hearing October 15, 2026
Claim Deadline
September 24, 2026
11:59 p.m. Eastern Time · online submissions and mailed claims both · same date to opt out or object
Estimated Payout
Up to $7 per purchase
Full purchase price with proof · or a $25 voucher, $50 maximum in vouchers · pro rata adjustment either way
Proof Required
No
Notice ID and PIN are optional on the claim form · proof of purchase is needed only for the full purchase price or for cash and a voucher together
What Changed Recently?
The parties reached a settlement in the case brought against Lake Consumer Products over its MG217 coal tar shampoos, and the court granted preliminary approval, which set the class period cutoff at June 25, 2026, appointed a settlement administrator, and opened the claim process. Notice went out over the summer of 2026 and the claim window now runs through September 24, 2026.Lake denies the plaintiff's claims, denies any fault or wrongdoing, and says the products are safe and conform with all state and federal regulations. The court has not determined which side is right. Both sides say they agreed to settle to avoid the expense and uncertainty of continuing to litigate.
This is the second open benzene-related consumer settlement on the site this season. The Strides testosterone gel benzene settlement reimburses 40% to 100% of what buyers paid out of pocket, and its claim window closes a week earlier.
What Is This Settlement About?
The plaintiff alleges that Lake Consumer Products failed to manufacture its MG217 coal tar shampoos in accordance with current Good Manufacturing Practices and industry practice as to the levels of benzene present in the products. Benzene is a solvent classified as a human carcinogen and is not an intended ingredient in these shampoos; the complaint's theory is a manufacturing-quality one rather than a claim that any particular person was injured.Lake denies the allegations and asserts that the products are safe and conform with all state and federal regulations. Nothing in the settlement is a finding that the company did anything wrong, and the agreement resolves the case without any admission of liability. These remain allegations that no court has ruled on.
Alongside the money, the company agreed to injunctive relief: it will not manufacture, market, distribute, or sell any of the covered products unless the amount of coal tar in the finished product is no more than 0.5% by weight. That is a meaningful change for a line whose best-known formulation is a 3% coal tar shampoo.
Who Qualifies?
You are a settlement class member if you purchased any variety of MG217 coal tar shampoo in the United States between January 1, 2021 and June 25, 2026. There is no residency requirement beyond the purchase being made in the United States or its territories, and no minimum number of bottles.The notice gives MG217 Psoriasis Extra Strength, MG217 Psoriasis Medicated Conditioning 3% Coal Tar Shampoo, and MG217 Dandruff Therapeutic Shampoo as examples of the covered products. Those are examples, not the full list — the class definition reaches any variety of the coal tar shampoo products, so a formulation that is not named can still qualify.
The certification on the claim form excludes several groups: anyone with pending litigation of their own against Lake, anyone who timely opted out, current officers, directors and shareholders of Lake, counsel for Lake and their employees, and the judicial officers presiding over the case along with their immediate family and staff. Claims filed by aggregators or bulk filers are rejected, so you have to submit your own.
Which MG217 Shampoos Are Covered?
The covered line is MG217's coal tar shampoos, sold in psoriasis and dandruff formulations at different coal tar strengths. The table below maps the products named in the settlement notice to the retail listings they correspond to, so you can check which one you bought. The product links are affiliate links to Amazon; the settlement class does not depend on where you bought the shampoo.| Product named in the notice | Retail listing | Coal tar strength |
|---|---|---|
| MG217 Psoriasis Medicated Conditioning 3% Coal Tar Shampoo | MG217 Psoriasis Medicated Conditioning 3% Coal Tar Shampoo, 8 fl oz | 3% |
| MG217 Dandruff Therapeutic Shampoo | MG217 Dandruff 3% Coal Tar Dandruff Shampoo, 8 oz tube | 3% |
| MG217 Psoriasis Extra Strength (shampoo formulations) | MG217 Medicated Conditioning Coal Tar Shampoo, Maximum Strength, 8 oz | 3% |
| Other MG217 coal tar shampoo varieties | MG217 Psoriasis 3% Coal Tar Shampoo & Conditioner Scalp Treatment, 4 fl oz | 3% |
MG217 also sells coal tar ointments and salicylic acid shampoos. The settlement covers the coal tar shampoos, so an ointment or a salicylic acid formulation is outside the class.
How Much Can You Get?
Lake agreed to provide $1,200,000 in benefits: a non-reversionary Cash Settlement Fund of $700,000 and a non-reversionary Non-Monetary Fund of $500,000 in vouchers. Every figure below is an estimate until the administrator finishes validating claims, because both benefits adjust with the volume of claims filed.The cash benefit comes in two tiers. A qualifying purchase backed by proof of purchase is worth the amount you paid for it. A qualifying purchase with no proof of purchase is worth up to $7.00. Both tiers are subject to a pro rata increase or decrease based on how many claims come in at that tier, and the administrator is to make those adjustments so the net cash fund is paid out in full. Class counsel may also direct the administrator to cap the total no-proof cash a single claimant can receive.
The voucher is a $25.00 credit toward the MG217 product line, redeemable through a code the administrator provides. Vouchers do not expire, are transferable, may be combined with other discount codes, promotions, or gift cards, and do not have to be used in one transaction. If claimants elect more vouchers than the $500,000 fund covers, each voucher's value is reduced pro rata; if the fund is not exhausted, the administrator makes additional one-voucher distributions to claimants — including those who elected only cash — until it runs out, subject to a $50.00 ceiling per claimant. Anything left over goes to a cy pres recipient.
The fund also pays the administration costs, the attorneys' fees and expenses the court awards, and a service award to the class representative of up to $10,000. Class counsel say they do not intend to seek fees exceeding one-third of the net value created for the class across both funds.
What Proof or Notice ID Is Required?
None is required to file. The online claim form has Notice ID and PIN fields, but both are labeled optional, and the form states plainly that you do not need a Notice ID to submit a claim. Someone who never received a mailed or emailed notice can still file. If you do enter them, they have to be entered together and each Notice ID can be used only once.Proof of purchase changes what you can receive rather than whether you can file. Without it, a qualifying purchase is worth up to $7.00. With it, the purchase is worth the price you actually paid, and it is also the condition for electing both a cash payment and a voucher on the same claim form.
Every claim is signed under penalty of perjury, and the certification includes that you have not filed another claim for the same purchases and have not already received a complete refund for them. The administrator audits claims for accuracy and fraud, may contact you for more information, and may reject claims that are invalid or illegible.
What Is the Deadline?
Claim forms must be submitted online or postmarked no later than September 24, 2026 at 11:59 p.m. Eastern Time. That timezone comes from the claim form itself, and it is one of the few settlements that states one — file before the evening of the 24th rather than testing it.September 24, 2026 is also the deadline to exclude yourself from the class and the deadline to object to the settlement. An exclusion request must be signed and dated and must say you want to be excluded from the settlement in this case; an objection must be filed with the court and served on the parties, and must say whether you intend to speak at the final approval hearing.
How Do You Take Action?
File on the official settlement website, MG217 Shampoo Settlement. Fill in your contact information, confirm that you purchased one or more of the products in the United States or its territories between January 1, 2021 and June 25, 2026, choose the cash benefit, the voucher, or both, then sign and date the form.Enter your Notice ID and PIN only if you received a notice and have them; leave both blank otherwise. If you are claiming the full purchase price, or claiming cash and a voucher together, attach your proof of purchase before you submit. Keep a copy of what you file.
Claims must be submitted by the claimant. The administrator rejects claim forms filed by claim aggregators and other bulk filers, so a third-party filing service cannot do this for you.
What Happens Next?
The claim window closes September 24, 2026. The court then holds the final approval hearing on October 15, 2026 at 11:00 a.m. in Easton, Pennsylvania, where it will decide whether the settlement is fair, reasonable and adequate, hear any objections, and rule on the request for attorneys' fees and costs. A hearing being held is not the same as approval being granted, and the notice says the hearing can be postponed to a different date or time without notice.If the court approves the settlement, approved claimants are paid after final approval and after any appeal is resolved. Claimants may choose an electronic payment, or receive a paper check or a prepaid debit card. No payment date had been announced as of August 20, 2026.
Sources and Verification
This page is based on the official settlement website and the court-approved settlement documents:- Official settlement website — MG217 Shampoo Settlement
- Frequently asked questions page
- Online claim form and general instructions
- Settlement agreement and case documents
- Court-approved long form notice (PDF)
- Justia docket — Pineda v. Lake Consumer Products, Inc. (E.D. Pa.)
Questions
Do I need a receipt or the Notice ID to file a claim?
No. The online claim form marks the Notice ID and PIN fields optional, and you can file without either one. A claim filed without a receipt is capped at $7.00 per qualifying purchase, subject to pro rata adjustment. A receipt or other proof of purchase is only needed if you want the full purchase price back for a purchase, or if you want both a cash payment and a voucher.
Can I take both the cash payment and the voucher?
Yes, but only if you submit proof of purchase. The claim form lets you select the Cash Benefit, the Voucher, or both, and the notice states that a claimant may elect both provided they submit proof of purchase. Vouchers are $25.00 in credit toward the MG217 product line, do not expire, are transferable, and can be combined with other discounts, with no claimant receiving more than $50.00 in vouchers.
Which MG217 products are covered?
The settlement covers MG217 coal tar shampoos purchased in the United States between January 1, 2021 and June 25, 2026, such as MG217 Psoriasis Extra Strength, MG217 Psoriasis Medicated Conditioning 3% Coal Tar Shampoo, and MG217 Dandruff Therapeutic Shampoo. The class definition covers any variety of those products, so a coal tar shampoo formulation not named in the examples can still qualify.
Is the settlement about benzene in the shampoo?
The plaintiff alleges that Lake Consumer Products failed to manufacture the products in accordance with current Good Manufacturing Practices and industry practice as to the levels of benzene present in them. Lake denies the claims, denies any wrongdoing, and says the products are safe and conform with state and federal regulations. No court has decided which side is right, and the settlement is not a finding of liability.
When would payments go out?
Not before the court rules. The final approval hearing is scheduled for October 15, 2026, and the notice says approved claimants are paid after final approval and after any appeals are resolved. Claimants may choose an electronic payment or receive a paper check or prepaid debit card. No payment date had been announced as of August 20, 2026.
Official Settlement Notice
For more class actions keep scrolling below.
Settlement Amount
$1,200,000
$700,000 non-reversionary cash fund + $500,000 non-reversionary voucher fund
Case Title
Pineda v. Lake Consumer Products, Inc.
Case Number
5:2024-cv-01074-CH
Court
U.S. District Court, Eastern District of Pennsylvania
Final Approval Hearing
October 15, 2026 at 11:00 AM
Easton, Pennsylvania — the hearing can be postponed without further notice
Administrator
Fidexis Group
Official Website
MG217 Shampoo Settlement
