China-based Gree Electric and two of its subsidiaries, including one in the U.S., have agreed to pay $91 million to resolve criminal charges for not reporting to the Consumer Product Safety Commission (CPSC) that their faulty dehumidifiers could catch on fire.
According to a court filing, Gree executives knew the defective dehumidifiers failed to meet applicable safety standards and could catch on fire but the company covered up the information and delayed reporting for months. The executives were eventually forced to report on the issue as consumer complaints of fires and related damages increased.
