January 14, 2026
Lawsuit Adds Weight to Cree Lighting's Mounting Struggles
Vendor lawsuit over $138K joins increasing load of financial leverage against Cree Lighting
A new vendor lawsuit adds to a growing list of legal and financial pressures facing Cree Lighting.
In December, Michigan-based OEM manufacturer Pace Industries filed suit against Cree Lighting USA LLC, seeking over $138,000 for allegedly unpaid invoices tied to multiple signed purchase orders. The complaint cites breach of contract, unjust enrichment, and account debt — a textbook trio in commercial disputes of this nature.
Pace Industries, which describes itself as "North America's Die Casting Leader," is headquartered in Novi, Michigan. Pace supplies OEM components to a range of manufacturers — including those in the lighting sector. In this case, the documentation includes signed orders for thousands of outdoor luminaire components, including a 5,000-unit shipment of low-cost canopy covers.
What elevates this suit beyond routine collections is its timing — and what it may signal about Cree Lighting’s broader financial condition.
The earliest invoice dates back to an October 2023 delivery, meaning some of the amounts in dispute have allegedly remained unpaid for well over a year. The case was filed on December 4, 2025 — just two months after Cree Lighting initiated its first furlough on October 1, and during its third furlough extension. With the current furlough extending to Friday, January 23, operations would theoretically resume on Monday, January 26. Whether that happens remains to be seen.
The lawsuit may reflect more than a billing dispute. It may be a strategic move by Pace to establish a claim in advance of any deeper financial trouble — and to secure its place in line if other creditors begin to take legal action.
Inside Lighting requested comment from Cree Lighting; the company declined to comment on ongoing litigation.
While One Company Sues, Another Holds the Keys
In the summer of 2025, Cree Lighting quietly sold its residential lamps business — including the Cree Lighting Home brand — to Feit Electric. Neither company issued a formal announcement. The only public trace came weeks later, when Feit began referring to the brand on its website and packaging. We confirmed through USPTO records that trademark ownership of "Cree Lighting" and related intellectual property have formally transferred to Feit as well.
But the story didn’t end with the sale.
On October 2 — just one day after Cree Lighting began its first furlough — Feit filed a UCC financing statement in Wisconsin, naming Cree Lighting USA LLC as the debtor. The filing gives Feit a secured interest in a wide range of assets: not just finished goods, but equipment, software, trademarks, and even future proceeds.
In plain terms, it’s a blanket lien — a legal mechanism that gives Feit first claim to Cree Lighting’s assets if things unravel. And while the exact collateral tied to this arrangement remains unclear, the scope of the filing suggests something far deeper than a simple product purchase.
Whether Feit is acting as a lender, a creditor, or something else entirely, the entanglement is real. A former partner now holds legal priority over a company in distress — and that adds a new layer of complexity to any potential path forward.
Waiting for late January
Cree Lighting’s leadership continues to project optimism, stating that operations will resume and that negotiations remain “very positive.” But the lawsuit from Pace suggests that not every business partner shares that confidence.
When a supplier of essential components — with longstanding ties to the lighting industry — decides to sue after waiting more than a year, it’s rarely about the money alone. It’s about positioning. It’s about momentum. And it’s about the expectation that others may soon follow.
Whether operations resume on January 26 may soon matter less than what has already been set in motion — in court records, financing statements and the decisions of those watching closely.
