[THE INVESTOR] A group of 160 consumers on July 26 filed a suit against Coway demanding 1.6 billion (US$1.40 million) in compensation for damages from using water purifier models with a nickel coating that tainted the water.

Nickel from the coating was found in dispensed water in three ice maker/water purifier models by Coway, with the number of users involved estimated at about 87,000.

Coway vowed to take responsibility should any health problems be confirmed from using company products, estimating some 53.8 billion won to recall and discard the faulty appliances and pay back more than 50 billion won in rental fees.

The plaintiffs claimed the company knew of the defect for over a year and tried to cover it up, and each demands 1.5 million won for a medical checkup and 1 million won in compensation for their emotional distress.

“Coway discovered the nickel coating was mixed into the dispensed water in July 2015, coinciding with when private-equity firm MBK Partners, its largest shareholder, was pushing for sales of its stake,” the plaintiffs said in the complaint. “The company did not disclose the findings on concerns over its impact on its share prices.”

The consumers accused Coway of inefficient early action that resulted in more damages, saying Coway only added a cover to stop the nickel coating from mixing into the water without replacing the problematic component.

“We doubt Coway’s claims that nickel has a very slim chance of posing a danger to the human body,” Nam Hee-woong, the attorney for the consumers, said.

“About 800 more consumers will question the harmful effects of nickel in the second and third rounds of compensation suits.”

()