Jury rules Dallas-based Trinity Industries defrauded federal government of $175M

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Jurors ruled that tweaks in Trinity's guardrails mean the federal government never received the products for which it originally paid.

Korri Kezar

Staff Writer- Dallas Business Journal

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A federal jury in Marshall, Texas, ruled Monday against Trinity Industries in a decision that affirms the Dallas company defrauded the government of $175 million since 2005.

But the price tag for Trinity's wrongdoing involving highway guardrail caps could be higher. Lawyers estimate the company could be out $1 billion because the False Claims Act, under which the suit was argued, says guilty parties can be forced to pay up to three times the amount of damages determined at trial. That's on top of attorney fees and additional fines.

How much Trinity will pay is up to U.S. District Judge Rodney Gillstrap, who originally heard the case last summer before declaring a mistrial. It's likely Trinity will appeal the ruling, which could take years to complete.

Josh Harman, a whistle-blower who filed the suit against Trinity, said changes the company made to its guardrails in 2005 made them less safe. Seven jurors decided that because of those tweaks, the government never received the product it had originally bought from Trinity.

The Federal Highway Administration is evaluating whether federal funds should be used in the future to buy Trinity's guardrails and guardrail components.

Korri covers banking, finance and nonprofits for the Dallas Business Journal. Subscribe to our email newsletters.