Gree Dehumidifier Lawsuit Alleges Defective Appliance Caused House Fire

Lawsuit claims Gree knew about dehumidifier fire dangers for years, pointing to internal communications describing the issue as urgent.

An insurance company has filed a lawsuit alleging a defective Gree dehumidifier ignited a fire in an Ohio couple’s home that caused more than $630,000 of damage.

The complaint (PDF) was brought by State Farm Fire and Casualty Company, as Subrogee of Mark and Michelle Neal, in Ohio Civil Court on June 26, naming Gree USA Inc. as the sole defendant. Gree removed the case to the U.S. District Court for the Southern District of Ohio on August 5.

State Farm claims the dehumidifier contained the same defective materials that prompted Gree to recall more than 2.2 million units over the past decade. These recalls were linked to nearly 700 reports of overheating, including dozens of fires. The largest recall came in 2023, when more than 1.5 million units sold under brands including GE, Kenmore, Soleus Air and Norpole were pulled from the market.

Gree is not the only dehumidifier manufacturer facing these kinds of claims. Similar allegations have also been raised in lawsuits involving other companies. In April, a lawsuit alleged a Walmart dehumidifier malfunctioned, sparking a fire that caused more than $2.3 million in damage to a New Jersey home.

Gree Dehumidifier Fire Allegations

According to the lawsuit, the Gree dehumidifier suddenly ignited at the Neals’ Nashport, Ohio, home on April 7, 2023, causing more than $630,000 in property damage.

State Farm says it paid to repair or replace the damaged property, along with other covered losses, and is now seeking to recover those insurance payments from Gree.

As evidence the company knew about the alleged defect years earlier, the complaint points to a 2012 incident in which Gree USA’s CEO received video showing one of the dehumidifiers catching fire. According to the filing, the CEO forwarded the video to Gree Hong Kong and Gree China, labeling it “urgent” and describing it as a “very serious issue with product quality.”

Despite that warning, State Farm alleges Gree continued selling dehumidifiers it knew were defective, failed to notify the U.S. Consumer Product Safety Commission (CPSC) about the alleged hazard and did not warn consumers.

The lawsuit further claims the dehumidifier contained the same defective plastic materials that prompted nationwide recalls after similar units were linked to dozens of residential fires.

Federal regulators also investigated Gree over allegations the company failed to report a known defect and unreasonable fire risk. The complaint indicates Gree later acknowledged the recalled dehumidifiers did not comply with applicable safety requirements.

State Farm also claims Gree falsely represented that the plastic housing met UL 94 fire-resistance standards, even though the material allegedly failed to satisfy those certification requirements and could ignite and sustain combustion.

As a result, the lawsuit contends Gree knowingly marketed dehumidifiers that failed to meet safety standards, concealed the alleged defect from regulators and consumers, and continued selling the products despite recognizing they posed an unreasonable fire hazard.

“At all times pertinent hereto, Gree USA knew or should have known that the Subject Dehumidifier created a dangerous and unreasonable risk of harm of overheating and igniting a fire during the normal, intended, and foreseeable use because the Subject Dehumidifier did not meet the certification standards which it purported to meet.”

— State Farm Fire and Casualty Company v. Gree USA Inc.

The lawsuit raises allegations of negligence and violations of the Ohio product liability act. State Farm is seeking compensation for costs and fees it paid to cover the Neals’ claim, punitive damages and other compensation paid to reimburse the losses sustained by the Neals.

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