When people think of Samsung, they often picture the company’s popular smartphones. However, Samsung produces a wide array of products beyond mobile devices.

This includes televisions, home appliances, and various components used by other smartphone manufacturers, such as displays, memory, and camera sensors. Recently, a lack of clarity among its many divisions has led to a significant legal issue, costing the company $10 million in a U.S. lawsuit.

Samsung comprises several divisions, each with distinct roles. Notable among these are Samsung Electronics, Samsung Engineering, Samsung SDS, Samsung Securities, and Samsung SDI, which focuses on battery production.

The legal troubles began in 2020 when Jordan Brewer from South Georgia filed a lawsuit after a 18650 battery, manufactured by Samsung SDI, exploded in his pocket, causing injuries. Brewer claimed that the battery was poorly designed and that Samsung failed to adequately warn users about its potential dangers.

However, Brewer mistakenly named Samsung Electronics America as the defendant instead of Samsung SDI, the correct division responsible for the battery. This error meant that while the broader Samsung entity was held liable, it was Samsung SDI that should have faced the legal action.

Compounding the issue, the lawsuit coincided with the COVID-19 pandemic, during which many employees at Samsung Electronics America were working remotely. As a result, crucial court documents were overlooked.

Under Georgia law, defendants are given 30 days to respond to lawsuits; failure to do so results in a default judgment. Consequently, Samsung Electronics America found itself unable to escape the lawsuit.

By October 2022, the court ordered the company to pay $10.8 million in damages. Although the ruling was initially appealed, Brewer won his appeal, and now Samsung Electronics America is eager to challenge the ruling again.

If unsuccessful, the company may ultimately have to pay for a lawsuit not directly related to its operations.