A Gree USA And Soleus Dehumicifiers lawsuit has been filed against the manufacturer for delaying the reporting of a fire risk. The lawsuit claims that after consumers complained in July 2012, Gree pressured Soleus to cover up the fire risk and delay reporting the complaints to the CPSC. If you have suffered similar damages, you can submit a complaint to a lawyer for free and he will evaluate your claim.
Gree Electric sued Soleus Dehumidifiers
On June 13, 2016, Gree Electric, a Chinese corporation, filed a lawsuit against Soleus Dehumidifiers and a company that sold its products. The lawsuit alleged that Gree used deceptive practices to market their dehumidifiers and attempted to harm Soleus’ reputation and financial situation. Several companies are involved in the litigation. A few of them are named below.
Several consumer complaints alleged that Soleus Dehumidifiers were dangerous. Gree had previously denied any safety issues and had only a few bad batches of its products. But the lawsuit says that the company is not being honest about the safety concerns of its products. A federal investigator has concluded that the relevant Gree dehumidifiers have flaws and are made of materials that are not safe for consumers.
In October 2021, Gree Electric paid out $91 million to settle the lawsuit and voluntarily recalled its dehumidifiers. The company has since expanded its recall to 350,000 GE dehumidifiers that were sold after August 2008. The manufacturer has agreed to pay the settlement and will cooperate with the Consumer Product Safety Commission. This case provides a window into the issues that consumers faced before the recalls were announced.
Insurance coverage
Insurance coverage for Gree USA And Soleous Dehumidifiers lawsuit is a potential source of liability insurance. Most claims professionals have heard of the company and its products. The company is responsible for 13 different brands of dehumidifiers, and their products are sold at most major home improvement stores and online retailers. A joint venture between Gree and MJC America, Inc. allegedly results in inferior quality dehumidifiers.
Many owners have found their homes burned down due to the defective dehumidifiers sold by Gree. Fires have been reported and the manufacturers have been ordered to recall the products. The lawsuit is expected to involve several thousand policyholders who have lost their homes or had their contents destroyed. The company’s insurance carrier may be forced to raise its rates in response to the lawsuit.
The lawsuit alleges that Gree’s products pose a fire risk and a significant number of property damage claims. A class action filed in the U.S. by four insurance companies alleges that Gree manufactured the dehumidifiers using plastic parts that could catch fire. The lawsuit seeks insurance coverage for the repair or replacement of the dehumidifiers.
Cost of lawsuit
A recent lawsuit alleges that the manufacturer of Gree dehumidifiers is liable for consumers’ injuries. The plaintiffs are Anthony and Barbara Avenatti, who was injured while escaping the fire caused by a Gree dehumidifier. They also claim that their firearms collection, worth nearly half a million dollars, was destroyed. They sued multiple Gree entities, including MJC America Ltd., which also does business as Soleus International Inc., a subsidiary of the Chinese corporation. The lawsuit claims that the company did not properly warn consumers of the risks associated with a Gree dehumidifier, and therefore failed to prevent the fires.
Fires caused by Gree dehumidifiers led to the recall of 2.2 million units. As a result, owners were advised to send back their nameplate and wait for a refund check. Some customers lost their homes because of the fire, and the lawsuit is aimed at suing the manufacturer for the losses incurred. Because Gree dehumidifiers were sold under well-known American brands, the lawsuit will aim to make the manufacturer pay consumers for the damages caused by fires.
The company began accepting complaints in 2012 after consumers discovered the dangers of Gree dehumidifiers. The company initially denied that there was a safety problem with the product, but later conducted independent testing to determine a manufacturing defect. Soleus pulled the affected products from the market in November 2012. They also alerted the CPSC to the problem. The company has since apologized to customers.
