Walmart (WMT) is set to pay $25 million to customers that were allegedly injured by exploding gas cans that it sold.
The gas cans, which were manufactured by Blitz USA, have been blamed for the injury and death of several people. Walmart is a defendant in 24 lawsuits involving the cans and is willing to pay roughly 15% of the $161 million that would settle the lawsuits. The rest of the money will be paid by Blitz, debtors and participating insurers. A hearing regarding the settlement is set to take place in early 2014, reports NBC News.
Blitz was previously the largest creator of plastic gas cans, but it’s now in bankruptcy and no longer sells gas cans.
The lawsuits against Walmart and Blitz claim that the two companies knowingly sold defective products to customers. The lawsuits also claim that the companies refused to add a flame arrester, a low-cost safety device, to the gas cans. Walmart has claimed that it isn’t responsible for the safety of the gas cans and that that responsibility falls on the gas can’s manufacturer, NBC News notes.
Experts advise people to never use gas to light a grill and that gas cans should be kept in a well-vented area.