CHICAGO — In one of the largest settlements involving a sex toy manufacturer, Standard Innovation Inc. this week agreed to pay about $3.75 million to resolve privacy claims involving its We-Vibe Classic and Rave by We-Vibe products.
Plaintiffs in a class-action lawsuit alleged that the vibes, designed to be used by couples, transmitted customer data and breached their privacy. Both products, according to the suit, allowed partners to control the devices via Bluetooth and a smartphone app.
Each of the plaintiffs in the suit who purchased the devices before September could receive payouts of up to $10,000 per device.
The suit alleged Standard Innovation used the app to harvest data, including temperature and intensity settings, about how customers used the vibrators.
The class settlement creates several ways for customers to collect — those who used the app to control the vibes will get up to $10,000 and those who purchased a connected device will receive up to $199.
Standard Innovation, in court papers, said that it “denied and continues to deny each and every allegation of wrongdoing and liability” and that it was prepared for a vigorous court battle. But the company also said that it didn’t want litigation to be long and drawn out.
“[Standard Innovation] maintains that it has strong, meritorious defenses to the claims alleged in the action, including without limitation that plaintiffs consented to the conduct alleged and that it would have succeeded in defeating class certification,” Standard Innovation counsel wrote in court papers.
“Nonetheless, taking into account the uncertainty and risks inherent in any litigation, [Standard Innovation] has concluded that further defense of the action would be protracted, risky, burdensome, and expensive, and that it is desirable and beneficial to it that the action be fully and finally settled.”
