Samsung is now facing a recall over its cheap filling machines.
The Korean company is also under fire for allegedly deceiving consumers about the benefits of its products.
In a blog post on Friday, Samsung said that its new K7, which is the first new mobile phone in its lineup to receive the latest OS upgrade since it launched in November, would be recalled because it is a low-end product with a high price tag.
The company says it will also be recalling all K7 devices that it sells in the United States.
The news comes as the Consumer Product Safety Commission is investigating Samsung over allegations that it sold faulty phones to consumers.
The Samsung K-series is the only smartphone in its family to get the Android 5.0 Lollipop update, but the company has yet to roll out an update for the K7 that is compatible with the operating system.
The device will be recalled to replace its old K-line, which was released in February.
The recall announcement comes just days after the company confirmed it would introduce a new mobile payment service in the coming weeks.
Samsung said it would add a new payment option for Samsung Pay that will allow consumers to pay for purchases with their credit cards, as well as purchase merchandise with PayPal.