Texas (Legal Newsline) — The Justice Department has announced a settlement
with Goodman Company LP in which the company will pay $5.55 million to settle
allegations of breaking Consumer Product Safety Commission (CPSC) rules.
to allegations, the company knew about fire risks posed by some of its air
conditioning and heating units and failed to timely inform the CPSC. Some of
these units were installed in hotels, schools and hospitals.
knew of a fire risk but waited roughly two years to inform the CPSC,” said
principal deputy assistant attorney general Benjamin C. Mizer, head of the
Justice Department’s Civil Division.
“Companies must report these safety issues immediately, as the law
requires, to protect the public from an unnecessary risk of injury. The Department of Justice will continue to
take enforcement action against companies that do not meet their consumer
product safety obligations.”
Goodman reported the fire risk, but then allegedly misrepresented the number of
fires that had occurred. Alleged conduct of this nature violates the Consumer
Product Safety Act.
conduct was illegal, dangerous and unacceptable,” CPSC Chairman Elliot F. Kaye said. “Goodman’s decision to hide information about serious fires
for years, while continuing to profit from sales, slowed down the announcement
of a recall and put the safety of many families at real risk.”