The Department of Justice and the Consumer Product Safety Commission have filed a lawsuit against Michaels Stores Inc. for failing to report serious hazards with glass vases that were prone to shattering. The authorities said Michaels knowingly violated the reporting requirements of the Consumer Product Safety Act, by failing to report information about the vases, which caused serious injuries to some of its customers, including lacerations that needed stitches, or permanent nerve and tendon damage that required surgery. The suit seeks civil penalties and relief for damaged parties. "We believe that Michaels chose to profit from selling defective vases that put people at risk, instead of following the law and immediately reporting that their vases were shattering and causing great harm to consumers," said CPSC Chairman Elliot F. Kaye. "To protect the public, companies are required to report potential product hazards and risks to CPSC on a timely basis. That means within 24 hours, not more than a year as in Michaels' case." Michaels shares were not yet active in premarket trade, but are up 13% in the year so far, while the S&P 500 has gained about 2%.
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