Guardrail Maker Found Guilty of Fraud


guardrailHighway guardrail maker Trinity Industries was found guilty of defrauding the federal government on Monday. The company was sued in Texas under the False Claims Act for making guardrails that can malfunction during car crashes and slice through vehicles. A Texas grand jury said Trinity owes the government $175 million, which was tripled to $525 million under federal law. It will be split between the Treasury Department and Joshua Harman, a guardrail competitor who brought the suit after discovering the malfunction. Trinity indicated it will appeal the case.

“Trinity believes the decision cannot and will not withstand legal scrutiny,” the company said in a statement. There are at least 14 other lawsuits alleging the guardrails were responsible for five deaths and a number of injuries. Massachusetts, Missouri, and Virginia all banned purchases of the guardrails. Read more at The New York Times.

{Andy Newscenter}