Tuesday, October 21, 2014

Guardrail Maker Trinity Industries Liable for Fraud in Texas

Trinity Industries, the highway guardrail maker accused of selling systems that can malfunction during crashes and slice through cars, was found by a jury on Monday to have defrauded the federal government. 

The case was brought under the False Claims Act by Joshua Harman, a competitor who discovered that the company made changes in 2005 to its rail head — the flat piece of steel at the front of the system — without telling the Federal Highway Administration, as is required. The company sold the guardrails to state governments that, in turn, received federal reimbursement.

Read the rest of the story at the New York Times.

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