In April 2014, a Tennessee bankruptcy judge approved a settlement to a class-action lawsuit against Oreck Corp. In the 2011 complaints, plaintiffs claimed the company falsely advertised its Halo vacuum and air purifiers were scientifically proven to eliminate common germs and reduce the risk of the flu when, in reality, these claims were not true. The company filed for bankruptcy in May 2013 and an automatic stay (i. e. an order that automatically stops all collection activity against the debtor as soon as a bankruptcy petition is filed) was put into place. In September 2013, plaintiffs petitioned the bankruptcy court to lift (i. e. remove) this automatic stay. The approved settlement would, among other things, provide class members with $2 million if the Oreck entities’ estates are consolidated and $1.5 million against Oreck Corp., Oreck Direct LLC, and Oreck Homecare LLC if the entities are not consolidated. (In re: Oreck Corp. Halo Vacuum and Air Purifiers Marketing and Sales Practices Litigation
, Case No. 2-ml-02317, C. D. CA.).