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Civil Penalty Sought in Lawsuit over Delay in Reporting Product Safety Hazard

Tuesday, June 30, 2015
Sandler, Travis & Rosenberg Trade Report

The Department of Justice and the Consumer Product Safety Commission announced recently the filing of a complaint charging a company and its former subsidiary with knowingly violating the reporting requirements of the Consumer Product Safety Act. The agencies are seeking undisclosed civil penalties and permanent injunctive relief.

According to a joint press release, the company failed to timely report a hazardous defect involving handles that suddenly detached from coffee pots. The suit alleges that about 1,600 reports about this problem were filed by consumers before the subsidiary finally notified the CPSC and agreed to recall the product. The government also alleges that the companies continued to distribute a small number of the defective products to retailers even after the recall was announced.

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