WASHINGTON (AP) – Sears, Roebuck and Co. has agreed to pay $500,000 to resolve federal allegations that it failed to report known defects on riding lawnmowers, federal safety officials said Friday. From April 1999 to September 2001, Sears learned of about 1,600 instances of fuel leakage and fuel tank cracking on some models of Craftsman lawnmowers, but the company did not report the problems as required by federal law, the Consumer Product Safety Commission said. As part of the settlement, Sears denies any violations, the commission said. About 36,000 of the Craftsman rear-engine riding lawnmowers were recalled in 2003. The manufacturer, Brentwood, Tenn.-based Murray Inc., later paid a $375,000 civil penalty to settle allegations of belatedly notifying the CPSC. Federal law mandates that companies must inform the CPSC within 24 hours of discovering any product defects that pose injury risks or violate federal safety standards. Sears issued a statement saying it notified the manufacturer of the reported incidents and is working with the CPSC to ensure that it meets its reporting obligations. “Sears settled this matter to avoid the expense and distraction of litigation,” the company said. Sears shares rose 35 cents to close at $35 in trading on the New York Stock Exchange. It has been rebounding in recent days from a low of just over $31.
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Rev. William Barber has made a significant journey to Washington, D.C., to protest against congressional Republicans' proposed $1.5 trillion budget cuts, which threaten to reduce government assistance programs vital to low-income Americans.
