Macy’s Class Action Lawsuit: $10.5M Sheet Settlement Rejected

The Macy’s class action lawsuit over sheet thread counts ended in a $10.5 million settlement, approved on May 13, 2024, after the judge rejected an earlier version of the deal. Payments to approved claimants began on October 1, 2025, and the case is now closed. The claim filing deadline was November 9, 2024, so new claims are no longer being accepted.1ClaimDepot. Macy’s CVC Labels Settlement

What the Lawsuit Alleged

Sara Hawes and Amy Hill filed suit against Macy’s on November 8, 2017, in the U.S. District Court for the Southern District of Ohio, together with sheet supplier AQ Textiles LLC and its parent manufacturer, Creative Textile Mills Pvt. Ltd.2Truthinadvertising.org. Hawes v. Macy’s Complaint The claim was that sheets in Macy’s “Chief Value Cotton” line carried thread counts far higher than the fabric actually contained.

Thread count measures the number of threads woven into a square inch of fabric, and the industry follows ASTM International standard D3775 for how to count them. According to the plaintiffs, AQ Textiles inserted bundles of untwisted polyester strands into the weave and then counted each strand in the bundle as a separate thread, when a bundle inserted as a single unit should count as one.3CCH. Hawes v. Macy’s Stores West Inc., Court Order

The gap was large. Macy’s “Somerset Collection” sheets were labeled 900 thread count; testing by the plaintiffs’ experts put the actual count at roughly 249 threads per square inch.2Truthinadvertising.org. Hawes v. Macy’s Complaint Court filings cited a 2016 communication in which AQ Textiles’ president, Larry Queen, told Macy’s he had made a “business decision” to use separable yarns and offered to indemnify Macy’s over the labeling. The record also indicated that testing labs would not normally have counted the multi-strand insertions as separate threads and did so only at the defendants’ specific request.3CCH. Hawes v. Macy’s Stores West Inc., Court Order

Macy’s denied violating any law or making misrepresentations.4NJ.com. Macy’s $10.5M Settlement: The Deadline Is Here

Who Was Covered and What Claimants Received

The settlement class included anyone who bought CVC sheets supplied by AQ Textiles from a Macy’s store in the United States or Guam, or online at macys.com, between November 8, 2013, and March 24, 2023.5CVC Sheet Settlement. Frequently Asked Questions

Payments depended on documentation. Claimants whose purchases appeared in Macy’s records, or who submitted a receipt, received $7.50 per unit. Claimants without proof of purchase who attested under penalty of perjury that they bought the sheets could receive $2.50, capped at $2.50 per household. If claims exceeded the fund after legal fees and administrative costs were deducted, individual payments would be reduced proportionally.5CVC Sheet Settlement. Frequently Asked Questions

Why the First Settlement Was Rejected

The original deal contained a cy pres provision, which directs leftover settlement funds to a nonprofit when further distribution to class members is impractical. Under that arrangement, money remaining after two rounds of claimant payments would have gone to the Public Interest Research Group (PIRG).

The Hamilton Lincoln Law Institute, through its Center for Class Action Fairness, filed an amicus brief in September 2023 opposing the deal. It argued that most of the $10.5 million would end up with PIRG rather than with consumers, that payments to actual class members were minimal, and that funneling class members’ money to a political advocacy organization without their consent raised a First Amendment problem.6HLLI. Amended Amicus Brief in Opposition to Macy’s Settlement

Judge Douglas R. Cole held a fairness hearing on October 20, 2023, and requested additional briefing on whether PIRG was a suitable cy pres recipient. On December 20, 2023, he rejected the settlement, ruling that PIRG was an inappropriate beneficiary and that the cy pres arrangement rendered the entire deal “unfair, unreasonable, and inadequate.”7HLLI. Hawes v. Macy’s Inc.

The parties reworked the agreement and eliminated the cy pres provision. Under the amended version, any money remaining after two rounds of distributions would go to a third pro-rata distribution among all approved claimants, whether or not they had proof of purchase.8CCH. Hawes v. Macy’s, Final Approval Order Judge Cole granted final approval on May 13, 2024.

Where the Case Stands Now

The claim filing deadline was November 9, 2024, and no additional claims can be submitted. The settlement administrator, Angeion Group, began issuing payments on October 1, 2025.1ClaimDepot. Macy’s CVC Labels Settlement If you filed a claim before the deadline and have a question about your payment, the administrator can be reached at 1-844-483-0488 or info@cvcsheetsettlement.com.9PR Newswire. CVC Sheets Settlement Notice