PHILADELPHIA (BRAIN) — A settlement was reached Friday in State Farm Insurance Company's civil action lawsuit against Rad Power Bikes on behalf of an insured homeowner client who suffered property damage after his e-bike caught fire.
The lawsuit in U.S. District Court for the Eastern District of Pennsylvania was dismissed with prejudice after it was filed Oct. 4, 2022, claiming damages were in excess of $250,000. The lawsuit alleged design, manufacturing, and component defects; use and/or handling instruction and/or warnings defects; and/or a failure to warn about the design, manufacturing, and/or component defects; and/or proper installation instructions. A breach of warranty also was alleged.
A few days after the lawsuit was filed, Rad Power Bikes denied to BRAIN that one of its e-bikes started the residential fire.
In January 2023, State Farm filed an amended complaint, adding two Taiwanese companies: Fritz Jou Manufacturing and battery pack supplier TD HiTech Energy. In March 2023, Fritz Jou Manufacturing's motion to dismiss the complaint was granted by the court, and in May, TD HiTech Energy's motion to dismiss also was granted. In both cases, Judge Chad F. Kenney wrote the claim was "facially frivolous."
Several pre-trial settlement conferences failed to result in a settlement last year, the first on Jan. 17. A jury trial was scheduled to begin next week, Feb. 26.
