Texas Attorney General Settles Lawsuit Due To Mistakenly Labeled Solar Panels

by San Antonio Attorney

A Texas Attorney General, otherwise known as the Texas’ consumer watchdog, struck a deal with a manufacturer from Dallas that previously sold solar panels claimed to be “Made in U.S.A.”

A new settlement was agreed with the Texas attorney general’s office. It mandated the officials, particularly the ones who shut down 1SolTech Inc.’s operations earlier this year, in agreement to pay for a civil penalty of $5 million. This penalty is approximately $2.8 million in compensation for customers who bought the solar panels.

1SolTech Inc. confessed that they purchased solar panels that were made in China and remarketed them as “Made in the USA by 1SolTech, Inc.”, according to court papers. The panels were also labeled in a way that they also met the quality testing standards when in fact these were all farce, according to court documents filed in Sherman, Texas.

Texas attorney general’s office sued 1SolTech last September 2013.  The Texas attorney general’s office allegedly stated that the company violated the state’s consumer-protection laws. Less than a month later, the company filed for bankruptcy and shut down its operations.

Before the lawsuit was filed against 1SolTech, there was already trouble within the company. The marketing for solar panels went downhill because of a multitude of Chinese manufactured panels in competition in 2010. This competition affected the company’s sales, according to court papers filed by a lawyer from Texas.

The settlement was already filed to court earlier this week, though it is vague how much financial compensation is needed. Mark Weisbart, a Texas lawyer, is still in process of accreting a huge amount of money to pay off the company’s previous debts. This was done by selling off other assets.

1SolTech was founded in 2008 and the company used a manufacturing plant that was located in Dallas. Weisbart secured a judge’s approval to sell the company’s manufacturing equipment, inventory and logo for a price of $502,000 to another company named Coastal Plains Power & Battery.

Officials of 1SolTech promised inform customers who bought company’s solar panels to warn them that this might bear a fire hazard. This is based from an agreed settlement. However, a bankruptcy judge still needs to approve other dealings.

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