Zen Must Pay Just $10K of $5.5 Million for Selling Recalled Products

Zen Magnet's ability pay means a $5.5 million penalty for settling recalled products was reduced to $10,000. The November 30 order came in Colorado U.S. district court. The company must pay by March 15.

The company also must destroy units it purchased from Star Networks and any indistinguishable units intermingled with those. The agreement by both parties came eight months after the judge in the case, Christine Arguello, found that Zen failed to exercise due care when purchased recalled units from Star Networks and mixed them with its own (PSL, 3/28/16).

The new order is at bit.ly/2fPJ0xl.

The development occurred a week after the 10th Circuit vacated CPSC's separate mandatory rule that effectively banned small, separable, strong magnets (PSL, 11/28/16). Zen followed that victory with a marketing effort, promising delivery in the first quarter of 2017.