This is a class action brought on behalf of purchasers of the NETGEAR CM700 cable modem (the “Modem”) sold by Defendant NETGEAR, Inc. (“Netgear”). A cable modem is a device that allows cable subscribers to connect to broadband Internet service.
As alleged in the complaint, since its launch in 2016, Netgear marketed the Modem as a reliable high-end modem that is “ideal for the fastest Internet speed service plans.” However, Netgear failed to disclose that the Modem contains a serious defect that prevents it from operating properly. News reports and customer complaints since the release of the Modem indicate that it suffers from high spikes in network latency—delays in data communication over the network—that degrades users’ Internet connectivity.
Plaintiff purchased a Modem for personal use and suffered network latency, an experience shared by many purchasers of the Modem. Despite this widespread defect, Netgear has not announced a recall of the affected model, or otherwise offered to repair or replace it.
By shipping Modems with this defect, Netgear sold consumer goods that were substantially below the quality generally available in the market, were not fit for the for the Internet connectivity for which they were generally used, and were not adequately packaged and labeled.