Well, I hadn’t heard that, but suppose it’s true:
Legally you have to be able to distinguish what they did from a company whose customer told them that some merchandise was defective, and then the company simply carried on operating as normal while looking into it. I think it would be unusual to hold that money aside unless the company thought that the complaint was likely accurate, and certainly it’s not legally required, because the company will have bills to pay.
So if it’s not unreasonable for a company to carry on spending money while there’s a question over potentially having to repay something, we can’t reasonably take the position that, because this company carried on spending money, that must be fraudulent.
HumanPenguin@feddit.uk 1 day ago
That assumes they had no costs in producing or acquiring the not fit for purpose goods. And that they knew the goods were unfit.
A fraud case would be more about proving they knew the goods would not be fit for purpose. Failing to pay back money when if they did not know. Is just breach of contract.
Proving there knowledge before the event. And the cost of providing the goods. Or the companies wealth to payback the costs of operation while obtaining and shipping the goods. Are all extremely complex to do.