$750K Sealy Settlement Ends Class Action Suit Over ‘1250’ Thread Counts

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American Textile Company has agreed to pay $750,000 to settle a class action lawsuit that claimed that certain Sealy bed sheets were falsely labeled as having a 1250 thread count, an allegedly highly inflated calculation.

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The Sealy class action settlement received preliminary approval from the court on October 30, 2025 and covers all consumers in the United States who, between October 19, 2016 and October 30, 2025, purchased a Sealy bedding product labeled as having a 1250 thread count. Per court documents, the Sealy products covered by the settlement include, but are not limited to, “Ultimate Indulgence,” “Premium Comfort,” “Cool Comfort,” “Premium Cooling,” and “Superior Cooling” bedding.

The court-approved website for the Sealy class action settlement can be found at https://www.ThreadCountSettlement.com/.

According to the settlement website, Sealy settlement class members who submit a valid, timely claim form have multiple options for reimbursement. Those who submit with their claim form proof of purchase of any of the Sealy products at issue are eligible to receive a one-time cash payment of $5 per product, with no set limit on the number of products for which a class member can receive reimbursement.

In lieu of a documented-proof-of-purchase settlement payment, class members with a valid claim form are eligible to receive a one-time cash payment of $5 per product, for a maximum of eight products, the site says.

Should the aggregate amount of approved claims be more or less than the amount of money made available to class members, the amount paid out for each valid claim may be increased or decreased on a pro rata basis, the website notes.

Importantly, a class member can submit a claim form for eligible Sealy purchases with and without proof and will be paid for the total combined amount of the claim, the settlement website says. Per the settlement agreement:

“Claims with Proof of Purchase and without Proof of Purchase shall be cumulative. For example, if a Claimant makes a claim for six (6) products without Proof of Purchase and for five (5) Products with Proof of Purchase, that Claimant shall receive compensation for eleven (11) Products for $55.00.” 

Sealy class members may elect to receive their settlement payout via check or electronic payment, and all checks must be cashed within 90 days after issuance before expiration.

To submit a Sealy settlement claim form online, class members can head to this page and complete the applicable fields to receive their payout as outlined on the settlement notice. Alternatively, class members can download a PDF of the claim form to print, fill out, and return by mail to the address listed near the bottom of the document.

Consumers with questions about the agreement and their payment can contact the settlement administrator to receive more information.

All Sealy settlement claim forms must be submitted online or by mail by May 12, 2026.

The court will determine whether to grant final approval to the Sealy settlement at a hearing on February 11, 2026. Compensation will begin to be distributed to class members only after final approval is granted and any appeals are resolved.

The Sealy class action lawsuit alleged that Sealy maker American Textile Company significantly inflated and subsequently mislabeled the thread count on a number of its bedding products.

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