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 Homebuilder accused of limiting the ability of customers to sue the company over alleged defects.
NEW YORK (Reuters) - Federal regulators plan to cite KB Home, one of the largest U.S. homebuilders, for limiting the ability of home purchasers to sue the company over alleged defects, the Wall Street Journal reported Tuesday.
Report: FTC to cite, fine KB Home
Homebuilder accused of limiting the ability of customers to sue the company over alleged defects.
July 12, 2005: 10:08 AM EDT
NEW YORK (Reuters) - Federal regulators plan to cite KB Home, one of the largest U.S. homebuilders, for limiting the ability of home purchasers to sue the company over alleged defects, the Wall Street Journal reported Tuesday. The newspaper, attributing its report to sources familiar with the situation, said a citation by the Federal Trade Commission is expected to carry a multimillion dollar fine and allege that KB Home (Research) violated a decades-old consent decree that prevents the company from including mandatory arbitration clauses in the warranties of home-purchase agreements. KB Home said it was unaware of the FTC's planned citation, the Journal said. A company spokeswoman told the newspaper that KB Home was working to resolve a longstanding disagreement with the FTC. Click here to read about a deal KB Home recently inked with a major mortgage lender.  |
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