Source: CCTV News Hebei Daily National Health Commission
Accepting a $91 million fine from the United States, Gree Electric appliances just responded urgently.
On October 30, a number of media reported that Gree Electric accepted a fine of $91 million from the United States, which was considered by investors to be a black swan (see Sudden!). Gree was blown up in the United States to reach a delayed prosecution agreement and accept a fine of $91 million! What is the defective dehumidifier product? In response to this matter, on the morning of October 31, Gree Electric Appliances issued a relevant note saying that the amount involved has been fully calculated and will not affect the normal operation of our company and the performance of this year.
Explanation of the case involving Gree Electric Appliances in the United States
On October 30, our company paid attention to the media spreading news related to Gree's litigation cases in the United States on the Internet, which is explained as follows:
Our company has recently reached an agreement with the Consumer Protection Division of the U.S. Department of Justice and the U.S. Attorney's Office for the Central District of California (collectively, DOJ) to cover the export of North American dehumidifiers manufactured by our company between 2005 and 2012.
We received an accident complaint in 2012 and filed a report with the U.S. Consumer Product Safety Commission (CPSC) in June 2013. Due to the untimely declaration, in 2016, our company and cpSC reached a civil settlement and paid 15.45 million US dollars.
In 2017, the DOJ held us accountable for the same incident. After several rounds of negotiations, we recently reached an agreement with the DOJ to pay $75.75 million. If we comply with the agreement, the DOJ will close the case at the end of the three-year period.
The issues covered in the above agreements all occurred 8 years ago, and there have been no similar problems since 2013. The amounts involved in the agreement have been fully accrued and will not affect the normal operation of our company and the results of the current year.
Zhuhai Gree Electric Appliance Co., Ltd
October 31, 2021
Source: China Fund News