Industry News

Homeowners allege improper disclosure by KB Home

Development site was formerly part of crop-dusting airport

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A group of Arizona homeowners has filed a lawsuit against KB Home, charging that the home builder engaged in fraud by failing to properly disclose a history of crop-dusting operations at a development site and failing to properly notify home buyers about a special tax district. A KB Home spokeswoman said company officials "are disappointed that these homeowners have chosen litigation," and that the company "is diligent in creating our disclosures and in communicating with our homeowners." Thomas A. Stoops and Michael T. Denious, lawyers at the Stoops, Denious & Wilson law firm in Phoenix, Ariz., filed the lawsuit with the Arizona Superior Court in Pinal County. The lawyers are representing a group of homeowners that includes 12 married couples and three individuals. Stoops and Denious offered no comment on the lawsuit. The lawsuit alleges that KB had failed to disclose that parts of a subdivision in the Phoenix area, known as SK Ranch, and adjacent property was formerly the Th...