Kawasaki Hit with $5.2M Penalty for Alleged Misrepresentation and Failure to Timely Report

The CPSC asserts that Kawasaki was aware of over 400 incidents involving its Teryx 750 model 4 x 4 off road vehicles, in particular cracks in the floorboards caused by debris outside of the vehicle.  The CPSC alleges that three of these incidents resulted in personal injuries between 2012 and 2014. By 2013 it is alleged that Kawasaki had investigated the matters and implemented a design change.  Kawasaki then approved an additional design change in anticipation of the 2015 model (the Teryx 800).  The CPSC alleges it was not until July 9, 2014 that Kawasaki filed a full report with the CPSC regarding the Teryx 750 vehicles.  A recall was announced by the end of July, 2014 of the Teryx 750 vehicles.  Between 2013 and 2015, it was further alleged that Kawasaki received notice of 150 incidents with personal injuries involving the newer Teryx 800 model, but did not file its full report with the CPSC until August 19, 2015.   The CSPC found that Kawasaki knew or should have known of the problems with its vehicles and should have reported sooner. Kawasaki is also alleged to have misrepresented information regarding what it was aware of and when.  Kawasaki denies these allegations and asserts that it conducted appropriate investigations and was forthright with the CPSC.