Lake Consumer Products has agreed to provide $1,200,000 in benefits to settle claims about benzene levels in its MG217 coal tar shampoos. Anyone who bought one in the United States on or after January 1, 2021 can claim up to $7 per purchase with no receipt, the full purchase price with proof, or a $25 product voucher. Claims close September 24, 2026 at 11:59 p.m. Eastern Time. Lake denies the allegations and says the products are safe.
Official resources:
- Official settlement website — MG217 Shampoo Settlement — the claim form, the FAQs, the settlement agreement and the long-form notice.
Table of Contents
- What is the MG217 settlement about?
- Who qualifies?
- How much can you get?
- What proof do you need?
- What is the deadline?
- How to file a claim
- What happens next?
What is the MG217 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. No court has ruled on which side is right, and the settlement resolves the case without any admission of liability.
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. 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.
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.
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.
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.
| Benefit | Amount |
|---|---|
| Cash, no proof of purchase | Up to $7.00 per qualifying purchase, subject to pro rata adjustment |
| Cash, with proof of purchase | The amount you actually paid, subject to pro rata adjustment |
| Voucher | $25.00 credit toward the MG217 line, $50.00 maximum per claimant |
Both cash 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.
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 — including to claimants who elected only cash — until it runs out, subject to the $50.00 ceiling. Anything left over goes to a cy pres recipient.
The fund also pays 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 do you need?
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 this 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. 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 to file a claim
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, a paper check or a prepaid debit card. No payment date has been announced.
Frequently Asked Questions
Do I need a receipt or the notice ID to file?
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. Proof of purchase is only needed if you want the full purchase price back, 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, do not expire, are transferable, and no claimant may receive more than $50.00 in vouchers.
Which MG217 products are covered?
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, so a coal tar shampoo formulation not named in the examples can still qualify.
Is this settlement saying the shampoo caused cancer?
No. The plaintiff alleges that Lake Consumer Products failed to manufacture the products in accordance with current Good Manufacturing Practices and industry practice as to benzene levels. It is a manufacturing-quality claim, not a personal injury claim. Lake denies the allegations and says the products are safe and conform with state and federal regulations.
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. No payment date has been announced.
Sources
- MG217 Shampoo Settlement: $7 a Bottle, No Receipt on OpenClassActions.com — the full settlement breakdown, including the product table mapping each named formulation to its retail listing.
- Official settlement website — MG217 Shampoo Settlement — FAQs, online claim form, settlement agreement and the court-approved long-form notice.
- Justia docket — Pineda v. Lake Consumer Products, Inc. (E.D. Pa.) — the case record behind the settlement.
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