It depends on what you mean by "bad company." To start off, it's important to understand the origin of Rearz. The owner, Laurie, started the company by sewing cloth diapers in children's sizes after she believed she could make better than the ones her children used. Eventually, this turned into selling these cloth diapers on line and eventually she began making them in adult sizes by request. Over time this morphed into her being ABDL-aware and catering to that market, and over time the company grew bigger and began to resell other ABDL products and some "adult" products. There was even a time when Rearz resold ABU products, which is funny to think about. Eventually, Rearz focused more on selling their newly developed disposable diapers and from late 2015 onward they became a very large and diverse brand. This video is a good watch for more information
https://www.ctvnews.ca/video?clipId=1854913&jwsource=cl
So, does Rearz make high quality products? Absolutely. Rearz diapers, albeit not the best, are quite high quality and have a variety of prints. They're quite moderately priced, coming in 12 packs (3 per case) and being around $38 a pack even on Amazon and coming from a different country. The company staff seem to be quite nice as well.
The reason many consider Rearz a bad company are due to the numerous and almost constant controversies they've been involved in. The biggest by far would be the ABDL trademark controversy.
A few years ago, Rearz attempted to trademark numerous term related to the community, including "ABDL" and several others. This sparked massive anger towards Rearz, as people saw this as an attempt to get rid of or seriously impede any other ABDL companies claiming to be ABDL; many saw it as "a greedy outside company trying to attack and profit off the ABDL community at our expense." It got so bad they temporarily abandoned most of their social media since every post would have comments related to trademarking. Rearz maintains they had no malicious intent by trademarking the term and eventually gave up trying.
Around the same time, Rearz began a lengthy court battle with APD, Adult Printed Diapers, more commonly known as AwwSoCute. This whole situation is incredibly complex and incredibly entertaining. The original allegation was that Rearz had bought stock of AwwSoCute products directly from the Chinese supplier they were buying from, and although there is a lot more to the story than that, more drama just looked bad on Rearz.
Then, in early 2019, Rearz released a pink variant of their "Rearz Rebels" print, in an apparent partnership with the American Breast Cancer society. For reference, this print is a skull with bones like (like a pirate flag) on a white background. This went over horribly. For one, people thought using
skulls and bones to raise awareness to cancer was horribly bad taste. Second off, it seemed like they were trying to profit off of breast cancer awareness. To this day, Rearz is still trying to offload this limited edition stock that they made in the form of onesies, diapers, training pants, etc.
Another controversy in late 2018 involved their newly released Lil Monsters diaper. Rearz had really hyped these diapers up, and upon buying them people found out they had defective tapes, defective leak guards, incorrect cuts, and other quality issues. The response by Rearz was seen as very inadequate; they didn't really say anything about the defects, they continued selling the defective products, and in their V2 edition they relegated the Lil Monsters print to a 3500ml daytime print (when the original was intended to be on par with Rebels or Seductions) without saying much either. It was seen as a bad response and shady handling of defective products, especially given the high customer care standard companies like ABU, Tykables, or Northshore have established in the community.
Earlier this year, Rearz posted a tweet with a chart about how to avoid the spread of coronavirus. This is around the time it had just been reported as reaching the USA with reports it had already been here and had been spreading. In incredibly bad taste, they put something along the lines of "wear diapers to avoid public bathrooms and avoid the spread of covid19." This, as you can imagine, went over poorly.
EDIT: Almost forgot the Alpaca controversy. Rearz released their most recent print, Alpacas, in a 10 pack instead of their usual 12 pack. They claimed this was because "They are so thick, we can only fit 10 in a bag!." In reality, they were just using a smaller bag. Furthermore, despite being advertised and themed under the premise of "thick, poofy, and soft like Alpaca fur" the only thing differing them from other Rearz nighttime diapers is less than 10 grams of SAP. This all was seen as more shady business tactics and some level of false advertisement.
So, whether or not you consider Rearz a bad company is up to you. They usually make high quality products including diapers and onesies, but their community participation is lacking and all of these issues hurt their reputation.
(If I got anything wrong here, please correct me below. Much of this is hearsay or what I can remember from years ago)