Bissell, the carpet cleaner giant, is paying $10m to settle claims that it failed to warn customers that its carpet cleaner was contaminated with shrimps.
The lawsuit, filed on Monday in California state court, alleges that the carpet cleaners failed to alert customers about the contamination until after it was discovered by a customer who complained to the company in 2015.
The plaintiffs allege that the company failed to take necessary steps to test for contamination and failed to provide appropriate warning to its customers.
“Stanford carpet cleaner and the carpet industry have a responsibility to be aware of the risks posed by contaminated carpet products and to report them to their regulatory and government agencies,” Bissell’s lawyer, Michael Wachter, said in a statement.
Stanford said it would pay the money to settle the claims.
“We are pleased that this matter is resolved with the parties to settle,” the company said in the statement.
“Stanford is committed to conducting our business responsibly and taking reasonable steps to protect customers.”
The settlement comes as California’s carpet cleaning market has boomed.
The state’s carpet market is worth more than $8 billion a year and is expected to reach $18 billion by 2020, according to the California Office of the Attorney General.
Bissell, which is based in Santa Clara, California, is also facing an investigation by the California Attorney General over allegations it failed its employees to follow workplace safety regulations.
The settlement also covers the claims of a second customer, a former employee who alleges she was subjected to sexual harassment and racial discrimination by a Bissell employee in the mid-1990s.