On Sept. 1, 2023, the Court granted final approval of the settlement for the Lely A4, according to a Sept. 18 press release from Stueve Siegel Hanson LLP. The settlement provided class members with the option to replace their existing robot with Lely's newer A5 model or to receive cash relief. Nearly all of the approximately 400 class members participated, and the relief selected is worth approximately $121,956,000.
The terms of the settlement were agreed upon after nearly 3 years of litigation. During the claims process, class members had the option to choose between two separate benefits:
- A share from a cash fund established by Lely, with individual payout amounts varying based on the number of robots purchased, as well as an additional cash payment of $1,000 per A4 and the choice between a four-year Extended Warranty or additional $7,000 cash per A4 Robot; or
- The option to trade in their A4 for Lely's newer A5 for a substantially reduced payment of $40,000.
Based on the claims submitted and options chosen, the cash fund is approximately $51 million and those opting for trade ins will receive approximately $71 million in value for trading in their A4s for new A5s.
On May 9, 2022, Stueve Siegel Hanson LLP, Cullenberg & Tensen PLLC, and Perrone Law PLLC filed a new lawsuit against DeLaval Holding AB, DeLaval Holding BV, DeLaval International AB, DeLaval Inc., and West Agro, Inc., as well as Tetra Laval International SA, alleging that their new milking robot, the VMS V300, suffers from the same or similar defects as the original robot covered under the prior settlement.
Lely Reveals New Distribution Partner
In a different Sept. 18 press release, Lely announced it will be opening a new Lely Center in Monroe, Wis. – Lely Center Monroe. This decision includes the acquisition of the Lely business from current partner, Argall Dairy Systems in Belleville and Platteville, Wis. The last day of Lely operations at Argall Dairy Systems was Aug. 31, 2023.
Customers of Argall Dairy Systems will be transferring accounts to Lely Center Monroe. Current Lely-focused staff from Argall Dairy Systems will be transitioning to Lely Center Monroe.