Class action lawsuits against Richmond American Homes have centered on defective plumbing systems and, in one federal enforcement case, environmental violations at construction sites. The company has resolved two major class actions over faulty pipes — a Las Vegas case involving Kitec-brand fittings that cost more than $26 million across two settlements, and a Southern California case over degraded copper pipes in Ladera Ranch that ended in a final approval hearing in February 2023. A separate Clean Water Act settlement with the U.S. Environmental Protection Agency in 2008 covered alleged stormwater violations at sites in 34 states.
The Las Vegas Kitec Plumbing Class Action
The costliest litigation against Richmond American involved Kitec-brand plumbing installed in homes across the Las Vegas valley between 1995 and 2006. The systems used brass fittings that corroded over time, producing clogged pipes, leaks, and falling water pressure. By 2009 the underlying class action in Clark County District Court covered roughly 32,000 homes and more than two dozen builders.1Las Vegas Review-Journal. Builder Agrees to $16 Million Settlement
Richmond American resolved its share in two rounds. In March 2008, the company agreed to pay more than $10.2 million to replumb approximately 1,150 homes. A second agreement followed in April 2009, covering an additional 2,400 homes at a cost of roughly $16 million.2Las Vegas Sun. Richmond American Homes Settles Plumbing Lawsuit District Court Judge Timothy Williams granted preliminary approval of the second settlement on April 28, 2009, with a fairness hearing set for June 22, 2009. A potential third settlement was reportedly under discussion at that time.3Las Vegas Review-Journal. Second Potential Settlement in Construction Defect Lawsuit Approved
Most class members received free replumbing rather than cash. The exception was homeowners who had already paid for their own repairs after experiencing leaks; they could recover what they spent.1Las Vegas Review-Journal. Builder Agrees to $16 Million Settlement
The Ladera Ranch Copper Pipe Class Action
In Southern California, homeowners sued Richmond American and other builders over copper pipes that degraded or broke because of local water conditions. Plaintiffs alleged the builders knew about the problem before installing the pipes. The lead case, Madlen Dye, et al. v. Richmond American Homes of California, Inc., et al., was filed on behalf of current and former owners of Richmond American homes in the Ladera Ranch community.4Dye Copper Pipe Class Action. Dye Copper Pipe Class Action Settlement
The litigation sat inside a larger wave of about 6,000 Ladera Ranch homeowners suing 10 construction companies over defective copper piping. An $8 million total settlement was reached with two of the builders, covering roughly 600 homeowners. The case had a bumpy procedural path: an appellate court reversed an early dismissal for co-defendants K. Hovnanian Enterprises Inc. and DR Horton Los Angeles Holding Company, letting the case move toward class certification.5KBK Lawyers. $8 Million Settlement for Defective Copper Pipes
The Dye settlement set November 29, 2022, as the deadline for objections and exclusion requests, and the court held the final approval hearing on February 23, 2023. As of 2025, no active class action proceedings tied to that case remain open against Richmond American.4Dye Copper Pipe Class Action. Dye Copper Pipe Class Action Settlement
The EPA Clean Water Act Settlement
On June 11, 2008, the EPA and the Department of Justice announced a settlement with Richmond American over alleged Clean Water Act violations at construction sites in 34 states and the District of Columbia.6U.S. Environmental Protection Agency. Richmond American Homes Settlement The government alleged the company had failed to obtain required stormwater permits at some sites, or obtained them only after construction began, and had failed to keep silt, debris, concrete washout, paint, used oil, pesticides, and solvents from washing into waterways.7U.S. Department of Justice. Richmond American Homes Clean Water Act Settlement
Richmond American agreed to pay a $795,000 civil penalty and to build a company-wide compliance program stricter than what regulations required. The program called for improved pollution prevention plans at every site, more frequent inspections, training for construction managers and contractors, trained staff at each site, new internal reporting, and annual reports to the EPA. The consent decree was lodged in the U.S. District Court for the Eastern District of Virginia, subject to a 30-day public comment period and court approval.6U.S. Environmental Protection Agency. Richmond American Homes Settlement The action was a federal enforcement matter rather than a consumer class action, so homeowners were not class members and did not receive payments from it.
Arbitration Clauses in Purchase Contracts
Individual Richmond American buyers who want to sue often find themselves pushed out of court. In Kimberly Elliott v. Richmond American Homes of California, Inc., a 2005 San Diego County case, a buyer sued for breach of contract and intentional infliction of emotional distress. The California Court of Appeal reversed the trial court and ordered the dispute to arbitration, finding the buyer had not shown that the company unreasonably delayed the arbitration process, and noting that she herself had not returned a signed waiver required by the American Arbitration Association.8FearNotLaw. Elliott v. Richmond American Homes of California If your purchase agreement contains an arbitration clause, expect any individual claim to move to arbitration rather than a courtroom, and expect class treatment to be harder to obtain outside a mass-defect situation like Kitec or Ladera Ranch.
Who You Are Suing Now: Sekisui House U.S.
Richmond American Homes is a subsidiary of M.D.C. Holdings, Inc., based in Denver, and operates in 16 states: Alabama, Arizona, California, Colorado, Florida, Idaho, Maryland, Nevada, New Mexico, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, and Washington.9Richmond American Homes Investor Relations. Sekisui House Acquisition Announcement
On April 19, 2024, Japan-based Sekisui House, Ltd. completed a $4.9 billion acquisition of M.D.C. Holdings at $63.00 per share in cash. M.D.C. was delisted from the New York Stock Exchange and became a wholly owned Sekisui House subsidiary.10PR Newswire. Sekisui House Completes Acquisition of MDC Holdings Sekisui House then rebranded M.D.C. Holdings as “Sekisui House U.S.” and folded Woodside Homes, Holt Homes, and Chesmar Homes into the same structure.11Builder Online. Sekisui House Finalizes U.S. Rebrand After M.D.C. Holdings Acquisition The reorganization was completed on January 6, 2026.12Sekisui House. Financial Topics If you are considering a claim tied to a Richmond American home, the corporate parent you will be dealing with today is Sekisui House U.S.