Since the company’s now-iconic shoes hit the footwear scene in 2002, Crocs, Inc. has experienced an array of business challenges. The company was on the brink of bankruptcy for much of the mid-2010s but began a resurgence in 2015. It now sells 150 million pairs of shoes annually, which translates to nearly $4 billion in revenue. But it’s not all smooth sailing from here. Crocs is facing a massive class action lawsuit that could dictate the future of the company.
The Crocs class action lawsuit started with consumers alleging that the products are “basically water shoes” and not suitable for their intended purpose, claiming that they can shrink several sizes in ordinary heat.
When you think of Crocs, you probably envision comfortable, versatile shoes that are perfect for almost any casual activity. The recent claims about false advertising and shrinkage in direct sunlight raise some serious concerns about the durability of the popular footwear line.
Here’s everything you need to know about the Crocs class action lawsuit, including the plaintiffs’ arguments, how the district court ruled on the amended complaint, and how you may be able to join the claim.
Crocs Class Action Lawsuit: Explaining the Basics
A class action lawsuit allows a group of people who have suffered similar harm from the same source to collectively bring their case to court.
This legal mechanism is designed to level the playing field between individuals and large corporations. By pooling their resources, plaintiffs can more effectively challenge companies and seek compensation or changes in business practices.
Under the class action model, plaintiffs must show that the reported issue was widespread. These actions typically involve hundreds or even thousands of complainants. This complexity can cause the litigation process to be drawn out, with many class action filings taking years to resolve.
The Crocs Class Action Lawsuit
Plaintiffs Martha Valentine and Ruby Cornejo initiated the Crocs lawsuit in the Northern District of California.
They claim that Crocs, Inc. has engaged in false advertising, fraudulent concealment, and failure to disclose issues related to the shrinkage of its shoes. These allegations suggest that the company knew its products would shrink several shoe sizes in certain conditions but refused to recall them anyway.
There are three main elements to the lawsuit:
Claims of False Advertising and Fraudulent Concealment
The core of the plaintiffs’ argument centers on the idea that Crocs hasn’t been honest with its customers.
They say the company falsely advertised its shoes as durable and suitable for a variety of environments without disclosing the risk of shrinkage and that these actions constitute fraudulent concealment and failure to provide consumers with necessary information.
Hiding these issues may have helped Crocs, Inc. improve its profit margins by shortening the product lifecycle. Think about it this way: if Crocs don’t last as long as they should, people will have to replace their shoes more often. At scale, this trend could lead to millions in additional shoe sales.
Selling defective shoes in a fraudulent manner violates the California Consumer Legal Remedies Act. If found guilty, Crocs, Inc. could have to pay millions of dollars to compensate consumers for defective shoes.
Allegations That the Shoes Don’t Fit Their Intended Purpose
One of the most alarming allegations in the lawsuit is that Crocs can actually shrink when exposed to water, heat, and direct sunlight. Commercials frequently show people wearing Crocs outside and around water. These ads undoubtedly had an impact on consumer behavior while wearing the shoes.
If you were to see an ad featuring someone lounging around in a pair of house slippers, you’d probably infer that they should only be worn indoors. On the other hand, if you see a commercial where someone is walking around in the sunshine while wearing Crocs, it’s reasonable to assume that they can be worn outside.
Attorneys representing the plaintiffs are making a similar argument about Crocs, stating that they’re marketed as water shoes and durable footwear. These ads lead consumers to reasonably believe the shoes are water-friendly and suitable for hot environments.
Complaints That Crocs Can Shrink by Several Shoe Sizes
The plaintiffs claim that the Croslite material used in Crocs shoes is prone to significant shrinkage. Some consumers report that their shoes shrank by several sizes, making them useless. This has led to frustration and disappointment among customers who expected their shoes to be as durable as advertised.
Crocs certainly isn’t the first major brand to face a class action lawsuit, and it won’t be the last. In 2023, Apple was ordered to pay $50 million in a class action lawsuit over unreliable MacBook keyboards.
This apparent uptick in class action lawsuits signifies that consumers and federal judges are serious about holding brands accountable for the quality of the products they sell.
History of the Problem and the Crocs Class Action Lawsuit
One of the main elements of the complaint is that shrinkage in hot environments is inconsistent with the company’s branding. Crocs ads frequently show people wearing the company’s shoes outside in the sun, which implies that the products are designed or appropriate for these conditions.
Crocs have developed a reputation for their comfort and versatility. Advertisements often highlight the shoes’ durability and suitability for various conditions, including wet environments. Many consumers have been convinced to purchase Crocs based on these claims, only to find themselves facing unexpected shrinkage issues.
Over time, more consumers have reported issues with their Crocs shrinking after wear. These complaints have surfaced on social media, consumer protection websites, and the review section of the company’s website.
When Did the Suit Begin?
Valentine and Cornejo initiated the Crocs class action lawsuit in November 2022, filing the action in the US District Court in Northern California.
Over the next several months, the law firms representing the plaintiffs began identifying additional complainants and gathering evidence to support their claims of false advertising. Four different class action claims have been filed to date.
Several firms have joined the fray, including Merchant Law Group LLP. These practices are fighting for justice on behalf of the thousands of consumers impacted by defective Crocs.
Legal Proceedings and Court Decisions
The Crocs class action lawsuit is being heard in the US District Court for the Northern District of California.
This venue was chosen because the lead plaintiffs, Martha Valentine and Ruby Cornejo, filed their complaint there. The plaintiffs also cite violations of several California laws and business codes, which makes hearing the case in the Golden State necessary.
Unsurprisingly, Crocs, Inc. has made several attempts to dismiss the lawsuits. In June 2023, the company asked US District Judge Trina L. Thompson to dismiss the amended complaint. In the motion, the company asked the judge to strike down class allegations and dismiss complaints of false advertising and fraudulent concealment.
Crocs, Inc. filed another motion to dismiss in early 2024. The company’s leaders based this motion on the fact that its shoes are manufactured from 90% Croslite material. They asked Judge Thompson to strike class allegations and dismiss the following five allegations:
- Fraudulent concealment
- Fraud/misrepresentation
- Violation of the California Consumers Legal Remedies Act
- False Advertising under the California Code of Business
- Negligent misrepresentation
Once again, Judge Thompson denied the motion. She explained that the matter of what the shoes are made of and how it impacts liability for shrinkage “is not to be decided at the pleading stage.”
It’s unclear whether Crocs, Inc. is attempting to shift the blame to Croslite. Either way, the court appears interested in uncovering additional facts about the shrinkage issue before entertaining this defense.
Based on the most recent developments, the case will likely proceed to trial.
Crocs, Inc. could still propose a settlement to avoid a drawn-out legal battle. However, the judge and plaintiffs must agree to the proposal, which could be too big a hurdle for the shoe retailer to overcome.
How to Join the Crocs Class Action Lawsuit
If you’re interested in joining the Crocs class action lawsuit, you’ll need to meet certain eligibility criteria.
First and foremost, you must have purchased Crocs shoes that experienced shrinkage issues. You should also be able to provide evidence of your purchase and the problems you encountered with the shoes.
You’ll need to connect with a law firm involved in the class action suit. An experienced legal professional representing the plaintiffs can help you understand your rights and determine whether you have grounds for a claim.
Several firms involved in the suit have contact forms to simplify the process of joining the claim. You can fill out one of these claim forms to get in contact with an attorney and potentially join the claim. If the plaintiffs win their case and you’re part of the suit, you may receive compensation.
Potential Outcomes and Impact of the Lawsuit
Despite the fact that the complaint was filed in 2022, the Crocs lawsuit is still in its early stages. Class action suits can become protracted and costly to litigate. However, there are still several potential scenarios, including some that could reduce the timeline to a resolution while allowing the shoe brand to save face with consumers.
One potential outcome is a settlement. In this scenario, Crocs, Inc. would agree to compensate affected consumers and possibly make changes to their advertising practices, products, or both. Another possibility is a court ruling in favor of the plaintiffs, which could also lead to compensation and mandated changes for the company.
There’s also a chance that Crocs, Inc. could win the suit. However, the plaintiffs have made a strong case to support their various claims against the shoe brand, which means it’s unlikely that company leaders could get all of the allegations tossed out.
If the plaintiffs are successful via a settlement negotiation or during a trial, the company could have to make significant changes to its advertising and product disclosure practices. For instance, it may have to provide a disclaimer that the products may be prone to shrinkage when exposed to heat or water.
The Crocs class action lawsuit could also cause long-lasting damage to the company’s reputation, which may make some consumers more open to buying knock-off versions of the shoes on budget ecommerce sites like SHEIN, Temu, or Alibaba.
How the Lawsuit May Impact Crocs Shoes and Consumers Everywhere
The Crocs class action lawsuit is still taking shape. However, it appears that the plaintiffs have already gained traction with the judge and the public. The case has seen several important developments, including a ruling allowing the amended complaint to proceed.
Based on what’s occurred thus far, it appears that Crocs, Inc. will have to explore settlement options or risk facing stiffer penalties during a trial.
If you believe you’ve been affected by the issues described in the Crocs class action lawsuit, you may want to consider joining the claim. Your participation could lead to compensation and provide an impetus for change to the company’s business practices.
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