Spartronics Begins Legal Campaign to Hold Generac Responsible for Millions in Unpaid Supplier Bills
Lawsuits accuse Generac, struggling with frequent warranty claims & customer and shareholder litigation, of leaving suppliers in the lurch
WILLIAMSPORT, Pa.–(BUSINESS WIRE)–Spartronics, a leading contract manufacturer of complex electronic and electromechanical devices for defense, medical and life sciences sectors, announced the beginning of a legal campaign against generator manufacturer Generac for failing to pay suppliers. Two lawsuits filed Friday are in response to Generac refusing to pay suppliers millions of dollars for parts that Generac authorized. Additional lawsuits are anticipated to follow.
The filed lawsuits say Generac forecasted sales and then directed Spartronics to order materials from suppliers in advance to meet those forecasts. However, after unsubstantiated sales forecasts failed to materialize into actual sales, Generac refused to pay the bills for what turned out to be excess inventory – unjustly placing financial responsibility on Spartronics.
“Spartronics’ global suppliers are critical for ensuring it has the parts needed to serve its industry-leading customers in the Defense and Medical sectors, and Spartronics will not sit by idly while Generac refuses to pay for custom, non-reusable and other materials that they demanded be produced,” said Christopher Clark, attorney for Spartronics.
In recent months, Generac has faced warranty claims and litigation related to fires involving certain of its products. Separately, as reported by the U.S. Consumer Product Safety Commission on May 5, 2023:
The U.S. Consumer Product Safety Commission (CPSC) is announcing that Generac Power Systems, Inc., of Waukesha, Wisconsin, has agreed to pay a $15,800,000 civil penalty. The settlement resolves CPSC’s charges that Generac failed to immediately report to CPSC, as required by law, that 32 models of its Generac® and DR® 6500 Watt and 8000 Watt portable generators contained a defect that could create a substantial product hazard and created an unreasonable risk of serious injury to consumers.
The Spartronics supplier network spans the globe to provide customers with a reliable supply chain, competitive pricing, and dependable sourcing. The initial two lawsuits were filed in Allegheny County Superior Court in Pittsburgh, Pennsylvania and the United States District Court for the Middle District of Pennsylvania in Scranton, Pennsylvania. Each lawsuit asks the Court to order Generac to pay amounts owed to a supplier from whom Spartronics ordered and procured materials and products for Generac – regardless of other business challenges Generac may be facing due to customer dissatisfaction or faulty products.
About Spartronics
Spartronics provides comprehensive contract manufacturing services, ranging from printed circuit board assembly (PCBA) and subsystem integration to full-box build (high-level assemblies). Additional services include engineering support such as manufacturing testing, supply chain management, sustaining engineering, and a suite of aftermarket services to support the full OEM product lifecycle.
With manufacturing resources strategically located worldwide, Spartronics’ manufacturing network spans the United States, Mexico, and Vietnam. Value-added engineering support is based in the United States and is available for product development, manufacturing readiness, and ramp to production.
Learn more at www.spartronics.com
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Sasha Bull
sasha@goldinsolutions.com
(212) 319-3451 x281
