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Verdict: Guardrail Company Defrauded Government

Last week Trinity Industries Inc., a manufacturer of U.S. highway guardrails, went to court over allegations it changed its design to save on manufacturing costs — raising safety concerns and never informing authorities of the change. The jury decided the company should have told the government about...

Last week Trinity Industries Inc., a manufacturer of U.S. highway guardrails, went to court over allegations it changed its design to save on manufacturing costs — raising safety concerns and never informing authorities of the change. The jury decided the company should have told the government about the design change.

Trinity released a statement yesterday, after the verdict was handed down: "Earlier today a jury in the U.S. District Court for the Eastern District of Texas returned a verdict against Trinity Industries, Inc. in a False Claims Act case. The jury awarded $175 million in damages.

"The Company respects the jury's decision. However, Trinity believes the decision cannot and will not withstand legal scrutiny. The Company strongly believes the courts will affirm its position."

For more information on this story, read "Manufacturer May Have Put Profits Before Safety"