$663 Million in Penalties for Maker of Guardrail
A Texas federal judge handed down a $663 million judgment Tuesday against Trinity Industries, the guardrail maker accused of producing a faulty product that can jam and spear through vehicles, reports The New York Times.
The ruling in the court of Judge Rodney Gilstrap of United States District Court is the latest stage of a whistle-blower case filed by Josh Harman, a competitor. Harman said he discovered in 2011 that Trinity had made a critical change to the dimensions of its ET-Plus guardrail in 2005, but failed to tell federal regulators as required by law.
“The jury found the company liable for defrauding the Federal Highway Administration and awarded $175 million, which, under the False Claims Act, was tripled to $525 million.” The Times reports. Added-0n penalties brought the judgment up to $663 million.