$1.2M Lake Consumer Products Settlement Resolves Class Action Suit Over Alleged Benzene Contamination in Shampoo

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Lake Consumer Products has agreed to a $1.2 million settlement to conclude a class action lawsuit that alleged the manufacturer distributed coal tar shampoo that contained dangerously high levels of benzene, a human carcinogen.

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The $1.2 million Lake Consumer Products class action settlement received preliminary approval from the court on June 25, 2026. The deal covers all individuals in the United States or its territories who purchased any formulation of Lake’s MG217® coal tar shampoo products—including MG217® Psoriasis Extra Strength, MG217® Psoriasis Medicated Conditioning 3% Coal Tar Shampoo, and MG217® Dandruff Therapeutic Shampoo—for personal, family or household purposes between January 1, 2021 and June 23, 2026.

ClassAction.org will update this page when the Lake Consumer Products class action settlement website is live.

Lake Consumer Products settlement class members who submit a timely, valid claim form with proof of a qualifying purchase, such as receipts or order confirmations, can receive a cash payment equal to the purchase price of each qualifying purchase.

Additionally, class members can file a claim form with proof of a qualifying purchase to receive a $25 voucher, which may be used after the purchase of any of the MG217 product line via a code provided by the settlement administrator. Vouchers are transferrable, can be combined with other discounts, promotions or gift cards, and do not have to be used in a single transaction.

Lake Consumer Products class members can file a claim form without proof of purchase to receive up to $7.00 for each qualifying purchase.

The final amount of each class member’s cash payout or voucher may increase or decrease depending on the number of valid claims filed, among other factors.

ClassAction.org will update this page with information on how to submit a Lake Consumer Products claim form as it is released by the settlement administrator. 

Finally, Lake Consumer Products has agreed to ensure that the products at issue have no more than 0.5 percent coal tar by weight in accordance with Good Manufacturing Practices.

The court will determine whether to grant the Lake Consumer Products class action settlement final approval following a hearing on August 24, 2026. Compensation will begin to be distributed to class members only after final approval has been granted and any appeals have been resolved.

The Lake Consumer Products class action lawsuit alleged that the manufacturer failed to disclose to consumers that its MG217 Psoriasis Extra Strength Shampoo, MG217 Psoriasis Medicated Conditioning 3% Coal Tar Shampoo, and MG217 Dandruff Therapeutic Shampoo contained benzene, a known carcinogen found in coal tar, failed to manufacture the products according to current Good Manufacturing Practices, and violated a slew of consumer protection laws.

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