Today a federal jury in the Central District of California unanimously found JM Eagle liable for defrauding the United States and several individual states. The trial was the first step in the culmination of seven years of contentious litigation. In order to facilitate a smoother proceeding, U.S. District Judge George H. Wu separated the trial into liability and damages phases. The second half of the bifurcated trial will soon commence to determine damages, and ultimately the amount owed by JM Eagle.
JM Eagle, the world’s largest manufacturer of PE and PVC piping, is headquartered in Los Angeles, CA. Given its preeminence in its field, JM Eagle has supplied considerable amounts of PE and PVC piping to the federal government, as well as, state and local governments throughout the nation.
The qui tam suit, filed under the False Claims Act, was brought by former JE Eagle employee John Hendrix. Mr. Hendrix formerly worked as an engineer in the company’s product assurance division, located in New Jersey. Mr. Hendrix claimed that JE Eagle deliberately manufactured and sold substandard piping, which was utilized throughout the country in water and sewer lines to disastrous effect. The jury agreed with Mr. Hendrix and found JE Eagle knowingly manufactured and sold an inferior, albeit cheaper to produce, product to increase its profit margins.
Young Law Group is a nationwide leader in whistleblower representation and has successfully represented numerous clients in some of the nation’s largest qui tam cases for over a decade. For a free confidential consultation, please call Eric L. Young, Esquire at (800) 590-4116 or complete the online form here.