Goodman faces $803m class action

USA: Goodman could face estimated damages of $803m in a new class action over the alleged sale of defective air conditioners.

The case filed last week in the District Court for the Eastern District of Pennsylvania is the latest putative class action alleging that evaporator coils in the company’s air conditioning units and heat pumps suffered from leaks and that the company had been aware of the problem since 2007.

Goodman, which was purchased by Daikin in 2012, is accused of falsely and deceptively representing on its website that its air conditioning  units are reliable, durable, dependable, long-lasting, and that Goodman’s manufacturing processes and the quality of its indoor comfort products either meet or exceed the highest standards in the heating and cooling industry.

The plaintiff also alleges that the evaporator coils in the units malfunction at a rate that far exceeds the industry average. It is also alleged that issue of leaking refrigerant had been exacerbated by the industry’s recent shift from R22 to the higher pressure R410A.

Goodman faces a number of accusations including breach of warranty, deceptive business practices, misrepresentation, and failure to notify customers of defects.

The company is asking for the suit to be removed to federal court claiming that Goodman reports that it sold almost 400,000 units in Pennsylvania during the timeframe outlined in the complaint.