Goodman Company pays $5.55 million to settle allegations of Consumer Product Safety Act violations

By Mark Iandolo | Sep 13, 2016

AUSTIN, 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.


According 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.

“Goodman 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.”


Eventually, 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.


“Goodman’s 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.”




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