Shea Homes

DEFENDANT NAME: Shea Homes, Inc.
STOCK SYMBOL:
CASE NUMBER: 2:14-cv-01566
CASE NAME:
COURT: U.S. District Court for the Western District of Washington
PRACTICE AREA: Consumer Rights
STATUS: Settled
CLASS PERIOD:
LEAD PLAINTIFF DEADLINE:
DATE FILED: 10/10/14
COURT LOCATION:
RELATED DOCUMENTS:
CONTACT:

Case Settled

A settlement was reached on behalf of homeowners in April 2015. The terms of the settlement are confidential, but in a filing with the Securities and Exchange Commission from Shea Homes, the company reported that by Dec. 31, 2014, it had accrued $13.3 million in connection with the settlement and related matters.

A group of Redmond homeowners has filed a lawsuit in federal court for the Western District of Washington against Shea Homes, Inc., alleging that the California-based homebuilder acted unfairly and deceptively in building, marketing and selling homes specifically marketed to elderly buyers.

The complaint, filed by attorneys Steve Berman with national class-action law firm Hagens Berman and Dave von Beck of Levy – von Beck & Associates on Oct. 10, 2014, was brought on behalf of more than 950 plaintiffs who together own about 600 homes built and sold by Shea Homes in the Trilogy at Redmond Ridge project, a community for elderly residents.

The lawsuit alleges that Shea knowingly ignored architect plans and building codes by omitting required exterior waterproofing components such as metal flashings intended to prevent water intrusion and rot damage. According to the complaint, Shea’s critical omissions and subsequent misrepresentations to Trilogy homebuyers have caused each home to suffer tens of thousands of dollars in damages.

The complaint includes photographs of rotting Trilogy homes, and garages with puddles of groundwater. The complaint also includes excerpts of internal Shea emails in which Shea employees appear to mock homeowners. In one email, a Shea customer service representative jokes that the poor quality of Shea’s homes provides them with “job security.”

The complaint alleges that Shea conducted secret investigations into its rotting homes as far back as 2007. According to the complaint, these investigations concluded that columns on hundreds of Trilogy homes were rotting internally from the day they were built, and that other wooden elements were rotting and detaching from houses. During this time, Shea allegedly told homeowners that the problems were not construction-related, but were due to inadequate homeowner maintenance.


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04/01/15: Case Settled

A settlement was reached on behalf of homeowners in April 2015. The terms of the settlement are confidential, but in a filing with the Securities and Exchange Commission from Shea Homes, the company reported that by Dec. 31, 2014, it had accrued $13.3 million in connection with the settlement and related matters.