Status, Summary, Battle #3 Details
Legal Battle Status:
Battle #1 : Should Zen Recall all Magnets?
Status: Victory. CPSC will appeal.
Battle #2: Zen Appeals Import Ban.
Battle #3: Civil case for recalled Magnicube magnets.
Status: Loss prior to Battle #1 result. Pending reconsideration.
What's going on with Battle #3?
Magnicube, Buckyballs, and Zen Magnets were once in a merged case in Battle #1, but Magnicube dropped out and settled. (Lawsuits are expensive are life draining!) The settlement included a recall and stop sale of Magnicube magnets. We purchased their remaining supply prior to recall since their 5mm colored spheres came from the exact same factory that we get our colored Neoballs from. Thus, this civil case names Zen Magnets LLC and Founder Shihan Qu in his personal capacity for violating Magnicube's recall.
Though awaiting reconsideration, the current order for Battle #3 came two days before the outcome of Battle #1, and includes:
-Civil Penalties, which the CPSC/DOJ have recommend as $15 million dollars
-"Destruction" of about 440,000 magnets that may have been held by Magnicube at one point. See photo below:
To be clear, Judge in Battle #3 was not in the position to decide on the merits of the dangers of the magnets themselves. The scope was much smaller. We spent only a couple of hours in front of Judge Arguello for Battle #3, whereas we spent two and a half weeks defending the effectiveness of warnings, our magnets, our packaging, and arguing CPSC statistics in Battle #1. Judge Arguello decided that our magnets were effectively the same as the Magnicube magnets that were under recall as a result of Mangicube's settlement. We have submitted a motion for reconsideration now that the results of Battle #1 are out.