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Thursday, May 2, 2024

Lawsuit claims LG Energy batteries catch fire, maker owes Marengo energy storage facility owners $10M for fires

Lawsuits
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John T. Ruskusky | Nixon Peabody

The owners of an energy storage facility in far northwest suburban Marengo have filed suit against battery maker LG Energy, saying LG owes $10 million for fires caused by batteries that allegedly are prone to combust.

"This action arises out of Defendant LG Energy's sale and delivery of materially defective lithium-ion battery products for use in an energy storage facility, and related misconduct, causing at least two separate thermal (fire) events and causing Plaintiffs to suffer over $10 million in damages," says the lawsuit by Marengo Battery Storage LLC.

The lawsuit was originally filed in McHenry County Circuit Court but transferred to U.S. District Court for the Northern District of Illinois.

Marengo Battery Storage was commissioned by Leclanche SA  to build a storage facility in Marengo, with LG Energy manufactured batteries that are used to regulate the power grid, the suit says.

"Marengo has had to take its facility offline for two lengthy periods (the latter of which is ongoing) because LG Energy's batteries are defective and have self-combusted creating fires," the lawsuit states.

LG "fraudently induced" Marengo Leclanche "by concealing material facts including, critically, that the replacement batteries also were defective including thermal/fire events," the suit alleges.

It seeks at least $10 million, plus interest and attorney fees.

Marengo Battery Storage is represented by attorneys John T. Ruskusky and Tammy P. Nguyen, of Nixon Peabody LLP, of Chicago.

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