Hundreds of South Korean Galaxy Note7 owners filed a joint lawsuit Monday against Samsung seeking compensation after the fire-prone smartphone was discontinued, Yonhap news agency reported.

Samsung, which only began selling the phone on August 19, was forced to discontinue production following a global recall and multiple reports of some of the devices catching fire.

In the suit filed in Seoul, the 527 plaintiffs are seeking 500,000 won (440 dollars) each, Yonhap said citing Harvest Law Office, the firm representing them.

The consumers' rights were violated as Samsung stopped production of Galaxy Note7, lawyer Ko Young-yeel told a press conference.

‘The consumers were also deprived of their rights to get after sales service,’ he said, according to Yonhap, adding that Samsung ‘should compensate for the mental distress caused by such a situation.’  Earlier Monday, the South Korean smartphone market leader offered a raft of discounts and incentives to retain customers after the debacle of its Galaxy Note7 device.

The company said that Note7 buyers in South Korea, who exchange their device for a Galaxy S7 or S7 Edge, could get the ‘new flagship models’ that hit the market next year.

This ‘upgrade programme’ could include a Galaxy S8 or a Galaxy Note8 phablet, a smartphone-tablet hybrid.

If customers opt for one of the new models, then they only have to pay half the price for an S7.

However, there is a condition: they must have ended a two-year contract with a mobile service provider for their S7 device.

This incentive only applies to the company's home market of South Korea for now, a spokesman said.

The 940-dollar Galaxy Note7 was aimed at the premium end of the market, where it was intended to compete with Apple's iPhone.