MoFi to Pay $25 Million in Analog Vinyl Controversy Settlement

A judge has rejected complaints from plaintiffs that the deal provides "inadequate relief"

BY Calum SlingerlandPublished May 12, 2023

A federal judge has approved Mobile Fidelity Sound Lab's (MoFi) $25 million settlement to resolve a 2022 fraud lawsuit concerning its celebrated audiophile vinyl records, while also rebuffing complaints from plaintiffs that the deal is unfair, Billboard reports.

The controversy, which shocked longtime listeners of titles from the fancy reissue label, cropped up last summer upon Phoenix-area record store owner alleging that MoFi was using digital technology in the production of its "Original Master Recording" and "Ultradisc One-Step" vinyl LPs, which the company had marketed as releases using audio sourced from original master recordings or analog tapes.

A subsequent report from The Washington Post confirmed that MoFi had first begun using Direct Stream Digital technology (DSD) as part of its manufacturing process in 2011, and how by the end of that year, 60 percent of the company's vinyl releases were incorporating the technology.

Naturally, these revelations riled up plenty of all-analog customers of the belief that audio sourced from analog tapes or original master recordings sounds better than that sourced using advanced analog-to-digital transfers. Following the Washington Post report, a class action lawsuit filed last August argued that a digital manufacturing step "diminishes the quality and collectability compared to all-analog recordings."

The sizeable settlement between MoFi and the plaintiffs, reached earlier this year, offered customers the option between receiving a full refund for any eligible records they purchased, or keep their vinyl and take either a five percent cash refund or a 10 percent MoFi credit refund.

However, some customers objected to the terms, claiming the settlement was "tainted by the stink of collusion in arguing the deal struck had been without their input by "ineffectual" lawyers. Now, US district judge James L. Robart has ruled that the settlement, still pending final approval, is "fair, adequate, and reasonable pursuant to Federal Rule of Civil Procedure," per court documents [via Pitchfork].

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