Unwillingness to deliver bad news. It starts out as a design flaw, and someone doesn't want to give the bad news, so it goes to production. Now it's even worse

Unwillingness to deliver bad news. It starts out as a design flaw, and someone doesn't want to give the bad news, so it goes to production. Now it's even worse news, so the higher up doesn't want to say anything either. It keeps getting further and further and worse and worse until there's a lawsuit.