RAEV E-Bike Lawsuit Claims Battery Fire Caused $1.6M in Property Damage

Manufacturer allegedly ignored multiple requests by the couple to address ongoing warranty complaints involving numerous problems and defects, which eventually led to their house burning down.

An insurance company has filed a lawsuit over a New Jersey house fire, alleging defective lithium-ion batteries caused a RAEV e-bike to explode, resulting in devastating property damage.

The complaint (PDF) was brought by the New Jersey Manufacturer’s Insurance Group (NJM), representing the homeowners, Steven and Kathleen Hoffman, in the U.S. District Court of New Jersey on June 11. The lawsuit names Shenzen Yilankee Electric, doing business as RAEV Bikes, and Amazon.com Services LLC as defendants.

NJM alleges two defective lithium-ion batteries for RAEV e-bikes sparked the fire, while the bicycles’ batteries were charging in the garage. The fire and smoke destroyed the family home and caused more than $1.6 million worth of damage.

Lithium-Ion Battery Fire Risks

Electric bicycles, or e-bikes, rely on lithium-ion batteries and integrated motors to help riders travel farther distances and climb hills more easily.

However, lithium-ion batteries in e-bikes and other consumer products can also suffer thermal runaway, which causes the battery cell to overheat. This triggers a rapid increase in temperature that can lead to fires, property damage, injuries and deaths. The risk is especially high among low-quality battery products that use substandard materials, lack rigorous safety testing or suffer from design defects.

Earlier this month, a product liability lawsuit was filed by a Florida man who suffered severe burn injuries after an Amazon e-bike burst into flames while the battery was charging. A wrongful death lawsuit was filed in Alabama in May, alleging a fire broke out while a Rad Power e-bike was charging, injuring a woman and killing her husband during the blaze.

RAEV E-Bike Battery Fire Allegations

NJM’s lawsuit indicates the Hoffmans purchased two RAEV Bullet X V2 e-bikes on August 16, 2024, along with a dual battery charging converter.

According to the complaint, the Bullet bikes were plagued by defects from the beginning, experiencing damaged tires, defective headlights and a defective throttle. Additionally, the bikes could not maintain the expected mileage per ride.

The Hoffmans requested assistance from RAEV, including repair from a local bike shop, but received no response. In February 2025, the couple requested to return the bike, yet RAEV denied the request.

Later that month, the Hoffmans contacted RAEV again about defects with the bikes, including new sensor problems and an ERR25 error code, but the company still did not respond.

On March 24, 2025, the Hoffmans requested warranty support. Four days later, a fire broke out in their garage, destroying the family’s home and much of their property.

Investigators traced the fire to defective lithium-ion battery packs that exploded while charging. After the Hoffmans submitted a claim for fire and smoke damage, NJM paid more than $1.6 million for the losses.

“The subject E- Bikes and their component parts were not reasonably fit, suitable, or safe for its intended purpose because it failed to contain adequate warnings or instructions; or was designed and/or manufactured in a defective manner.”

— New Jersey Manufacturer’s Insurance Group v. Shenzen Yilankee Electric et al.

The complaint raises allegations of products liability and breach of warranty. NJM is seeking compensation for damages paid for the Hoffman’s insurance claim.

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