Earlier this month, the Consumer Product Safety Commission in tandem with the Department of Justice withdrew its “material misrepresentation” claim in its ongoing lawsuit against arts and crafts retailer Michaels Stores. The Government had alleged, inter alia, that Michaels made a material misrepresentation to the agency in its Section 15(b) Report for certain glass vases that shattered during normal handling. The Government’s withdrawal of this claim raises interesting questions as to what constitutes a “material misrepresentation” – in this case to the CPSC – and why the claim was withdrawn.
Rukiya Mohamed is an associate in Crowell & Moring’s Product Liability & Torts and White Collar & Regulatory Enforcement groups in the firm’s Washington, D.C. office. Rukiya’s practice includes counseling large companies in risk-assessment and regulatory compliance and working on complex civil litigation issues.