The settlement resolves claims that the company knowingly withheld information about a defect that posed a risk of serious injury or death. Despite receiving 874 incident reports—including 71 that caused injuries—JHTT continued to distribute the machines even after identifying the issue and attempting internal production changes. The reality of the hazard only reached the public through a formal recall in October 2022.

Beyond the financial penalty, the agreement mandates strict operational oversight. JHTT and its affiliate, Johnson Health Tech North America, must now appoint a dedicated product safety professional to supervise compliance with the Consumer Product Safety Act. The company is further required to submit annual reports for the next three years, detailing the effectiveness of their internal safety audits and data analysis procedures to ensure future hazards are reported without delay.