Sealy Class Action Lawsuit Over Inflated Thread Counts — Claim Up to $5 Per Product in $750K Settlement by May 12, 2026
American Textile Company agreed to pay $750,000 to settle a class action lawsuit claiming Sealy-branded bedding advertised as “1250 thread count” was inflated nearly six times above actual counts using industry-standard methods. Consumers who purchased Sealy sheets, pillowcases, or bedding with “1250 thread count” labels between October 19, 2016, and October 30, 2025, can claim $5 per product—up to $40 without receipts, unlimited with proof of purchase. The claim deadline is May 12, 2026. The court grants final approval on February 11, 2026.
What Is the Sealy Thread Count Lawsuit?
The lawsuit, Santiago v. American Textile Company, Inc., alleged American Textile falsely advertised Sealy bedding products by inflating thread counts in violation of Federal Trade Commission (FTC) guidelines and state consumer protection laws.
Laboratory analysis using industry-standard ASTM methodology revealed the sheets had 57 warp yarns and 166 weft yarns per inch, totaling 223 threads—not 1250. American Textile allegedly reached 1250 by counting each individual filament in multi-ply yarns separately, which the FTC has warned against as misleading.
The settlement received preliminary court approval on October 30, 2025, covering all U.S. consumers who purchased affected Sealy products during the nine-year class period.
The False Advertising Claims: How Thread Counts Were Inflated
American Textile calculated the 1250 thread count by multiplying 57 warp yarns by 19 filaments in each yarn (equaling 1,083), then adding 166 weft yarns for a total of 1,249.
The FTC and National Textiles Association warned this method inflates thread counts several times higher than traditional industry standards. The FTC provided an example: labeling sheets as “300 thread count, 2 ply yarn” is non-deceptive, while labeling them “600 thread count” by counting plies individually would mislead consumers about quality.
Court documents allege this inflated thread count misled consumers into believing they were purchasing higher-quality bedding with better softness, comfort, durability, and longevity than actually delivered.
Affected Products: Which Sealy Bedding Qualifies
The settlement covers Sealy-branded bedding products labeled “1250 thread count,” including:
- Ultimate Indulgence
- Premium Comfort
- Cool Comfort
- Premium Cooling
- Superior Cooling
Products must have “1250 thread count” listed on packaging. The settlement applies to bedsheets, pillowcases, sheet sets, and similar textile bedding products—not mattresses or non-textile items.
Purchases from any U.S. retailer qualify, whether bought in-store or online, as long as the product packaging displayed the Sealy brand name with 1250 thread count labeling.
Settlement Amount: How Much Can You Claim?
Class members receive $5 per qualifying product purchased between October 19, 2016, and October 30, 2025.
Two Payment Options:
Without Proof of Purchase:
- Claim up to 8 products per household
- Maximum payment: $40
- No documentation required
With Proof of Purchase:
- Claim unlimited products at $5 each
- Requires receipts, order confirmations, or credit card statements showing purchase date
- No cap on number of products
Combined Claims: You can claim both with and without proof. Example: claim 6 products without proof ($30) plus 5 products with receipts ($25) for a total of $55.
Pro Rata Adjustments: If total claims exceed the $750,000 settlement fund after deducting attorney fees, administrative costs, and class representative service awards, payments may be reduced proportionally. If claims are less than available funds, payments may increase.
How to File Your Claim by May 12, 2026
Online Filing: Visit www.ThreadCountSettlement.com and complete the electronic claim form. Certify the number of eligible products purchased. If claiming more than 8 products, upload proof of purchase.
Mail Filing: Download the PDF claim form from the settlement website, complete it, and mail to:
Santiago v. American Textile Co. Inc. Settlement Administrator P.O. Box 301134 Los Angeles, CA 90030-1134
Deadline: Claims must be submitted online or postmarked by May 12, 2026.
Payment Method: Choose check or electronic payment. Checks expire 90 days after issuance.
Timeline: From Filing to Settlement
June 6, 2022: Initial class action lawsuit filed alleging inflated thread counts
October 19, 2023: Santiago v. American Textile Company filed in U.S. District Court, Western District of Pennsylvania (Case No. 2:23-cv-1811-CCW)
Related Cases Filed:
- Bruno v. ATC (N.D. Illinois, Case No. 1:22-cv-2937)
- Lancaster v. ATC (N.D. New York, Case No. 1:22-cv-1280)
- Shaw v. ATC (S.D. New York, Case No. 1:23-cv-10193)
October 1, 2024: Parties reach tentative settlement after mediation with Honorable Lisa Lenihan (Ret.)
October 30, 2025: Court grants preliminary approval to $750,000 settlement
January 21, 2026: Exclusion deadline (deadline to opt out of settlement)
February 11, 2026: Final approval hearing scheduled
May 12, 2026: Claim filing deadline
Payments Begin: Within 150 days after final court approval and resolution of any appeals
Class Representatives and Attorney Fees
Four class representatives—James Bruno, Alma Lancaster, Kevin Shaw, and the named plaintiff—will each receive $5,000 service awards for representing the class.
Class counsel may apply for up to $250,000 in attorney fees from the settlement fund. Court documents show extensive discovery occurred in the earliest filed case, including document production, interrogatories, and requests for admission.
The settlement administrators estimate more than 40 people purchased the products during the class period, satisfying numerosity requirements for class certification.
What American Textile Denies
American Textile Company has not admitted any wrongdoing, fault, liability, or damages. The company maintains it properly calculated thread counts but agreed to settle to avoid the risks, costs, and burdens of continued litigation.
The settlement resolves all claims related to thread count advertising for the covered Sealy products without any admission that its labeling violated consumer protection laws or FTC guidelines.
Consumer Protection Laws Violated
The lawsuit alleged violations of multiple state consumer protection statutes:
- Washington Consumer Protection Act (Wash. Rev. Code § 19.86.010 et seq.)
- Pennsylvania Unfair Trade Practices and Consumer Protection Law (73 P.S. § 201-1 et seq.)
- State consumer protection laws in Illinois, Montana, Kansas, Maine, Wyoming, Idaho, Kentucky, West Virginia, Iowa, Mississippi, and Utah
Claims centered on deceptive marketing practices that misled consumers about product quality through inflated thread count representations.
Industry Standards: How Thread Count Should Be Measured
The American Society for Testing and Materials (ASTM) provides standard methodology for calculating thread counts. Proper measurement counts the number of warp yarns (vertical threads) and weft yarns (horizontal threads) per square inch.
The FTC has warned against counting individual filaments in multi-ply yarns separately, as this artificially inflates thread counts and deceives consumers. Manufacturers should disclose both thread count and yarn ply (e.g., “300 thread count, 2 ply yarn”) to provide accurate information.
Industry experts note that thread count alone doesn’t determine sheet quality—fiber type, weave, and finish also significantly impact softness, durability, and comfort.
What This Means for Consumers
This settlement demonstrates that federal agencies and courts take thread count false advertising seriously. The FTC has explicitly warned companies against inflating thread counts by counting multi-ply yarn filaments individually.
Consumers purchasing bedding should:
- Look for clear labeling that separates thread count from yarn ply information
- Be skeptical of extremely high thread count claims (over 600-800 often indicates inflated counting methods)
- Consider fiber quality (Egyptian cotton, long-staple cotton) over thread count alone
- Research manufacturer reputation for honest labeling practices
- Request thread count calculation methodology if purchasing premium bedding
How to Verify Your Purchase Qualifies
Check if you purchased Sealy bedding between October 2016 and October 2025 with these characteristics:
- Brand Name: Sealy clearly labeled on packaging
- Thread Count: “1250” displayed on label or packaging
- Product Lines: Ultimate Indulgence, Premium Comfort, Cool Comfort, Premium Cooling, Superior Cooling (or similar 1250 thread count Sealy bedding)
- Product Type: Sheets, pillowcases, sheet sets, or similar textile bedding (not mattresses)
- Purchase Location: Anywhere in the United States
If you’re uncertain whether your purchase qualifies, contact the settlement administrator at 1-855-858-5886 or visit www.ThreadCountSettlement.com.
What Happens if You Do Nothing
If you do nothing, you remain a class member but receive no payment. You will be bound by the settlement and release all claims against American Textile related to the thread count allegations.
Your Options:
File a Claim: Receive $5 per product (the only way to get money)
Exclude Yourself: Opt out by January 21, 2026, to preserve your right to sue independently (you won’t receive settlement money but can pursue your own lawsuit)
Object: Submit written objections to the settlement by January 21, 2026, explaining why you believe it’s unfair (you can still receive payment if the settlement is approved despite your objection)
Sealy vs. Other Bedding False Advertising Cases
Thread count inflation lawsuits have targeted multiple bedding manufacturers. This settlement follows similar patterns in consumer protection litigation where companies use technical calculation methods that deviate from industry standards.
The case demonstrates class action lawsuits remain an effective tool for holding companies accountable for misleading marketing practices, even when individual consumer damages are small ($5 per product). Aggregating thousands of claims creates sufficient financial incentive for companies to reform labeling practices.
Lessons for Corporate Accountability
This settlement reinforces that companies must:
- Follow FTC guidelines for textile product labeling
- Use industry-standard measurement methods (ASTM standards)
- Avoid calculation techniques that artificially inflate quality metrics
- Provide clear, non-deceptive information to consumers about product specifications
- Recognize that “technically correct” calculations violating FTC guidance still expose companies to liability
The settlement’s broad nine-year class period covering October 2016 through October 2025 demonstrates courts will certify classes for prolonged false advertising campaigns.
Frequently Asked Questions
Can I still file a claim for Sealy 1250 thread count bedding?
Yes. The claim deadline is May 12, 2026. You can file online at www.ThreadCountSettlement.com or mail a paper claim form postmarked by that date.
How much money will I receive?
You’ll receive $5 per qualifying Sealy 1250 thread count product. Without receipts, you can claim up to 8 products ($40 maximum). With proof of purchase, you can claim unlimited products at $5 each. Payments may be adjusted pro rata depending on total claims filed.
What if I don’t have receipts?
You can still claim up to 8 products per household without any proof of purchase for a maximum payment of $40. No documentation is required for these claims.
Which Sealy products qualify?
Sealy-branded bedding (sheets, pillowcases, sheet sets) labeled “1250 thread count” purchased between October 19, 2016, and October 30, 2025. Products include Ultimate Indulgence, Premium Comfort, Cool Comfort, Premium Cooling, and Superior Cooling lines.
When will I receive my payment?
Payments will be distributed within 150 days after the court grants final approval on February 11, 2026, and any appeals are resolved. Expect payments in summer or fall 2026 if no appeals delay the process.
What if I bought Sealy products with different thread counts?
Only products labeled “1250 thread count” qualify for this settlement. Products with different thread counts (400, 600, 800, etc.) are not covered.
Can I claim both with and without proof of purchase?
Yes. You can claim up to 8 products without proof ($40) and additional products with proof ($5 each, unlimited). Your total payment combines both claim types.
What happens to American Textile Company?
The company pays $750,000 to the settlement fund but admits no wrongdoing. American Textile denies all allegations but agreed to settle to avoid litigation costs and risks.
Is this the same as the Sealy mattress lawsuits?
No. This settlement covers only Sealy-branded bedding textiles (sheets, pillowcases) with inflated thread count claims—not mattresses or other Sealy products.
Official Settlement Website: www.ThreadCountSettlement.com Settlement Administrator Phone: 1-855-858-5886 Case: Santiago v. American Textile Company, Inc., Case No. 2:23-cv-1811-CCW (W.D. Pa.)
Sources: U.S. District Court Western District of Pennsylvania court documents, official settlement notice, ClassAction.org reporting, Top Class Actions updates, Claim Depot settlement database, settlement administrator materials.
This article provides educational information about the Sealy thread count class action settlement and does not constitute legal advice. Visit the official settlement website or contact the settlement administrator for specific questions about your eligibility or claim.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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