Watchfire Signs has sued Cree, Inc for replacement costs and punitive damages relating to faulty LED bulbs sold to Watchfire.  In its complaint Watchfire alleges:

• From April 2017 to March 2018 Cree provided Watchfire with LED bulbs with a significant failure rate.
• Cree agreed to provide Watchfire with a $1.1 million credit under a Goodwill Agreement dated May 31, 2018
• In January 2018 Watchfire discovered further failures in LED bulbs.
• Cree failed to make improvements in process control monitoring to prevent excessive failure rates and Cree manufacturing personnel in China falsified quality assurance testing records.
• Watchfire has incurred $1.4 million in replacement costs and expects future replacement costs of $15.6 million.

Insider’s take:  First tariffs, then a shutdown of Chinese LED factories due to coronavirus concerns, then counterfeit products and now allegations of faulty Chinese-made LED bulbs.  Not good for the Chinese LED manufacturing industry.

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