Jury Finds JM Eagle Liable for Pipe Fraud

A federal jury has found that JM Eagle, the nation’s largest manufacturer of plastic pipe, violated the False Claims Act when it knowingly sold defective pipes to states and municipalities for use in drinking water, firefighting, irrigation and other public systems, the New York Times reported.

JM Eagle, formerly J-M Manufacturing, allegedly cut costs by using shoddy manufacturing practices to create weaker but more profitable polyvinyl chloride (PVC) pipe, and lied about whether or not it met strength and durability standards required by the government.  JM Eagle may have to pay triple damages, plus additional penalties for each false claim submitted to a state or municipal government.  The settlement has not yet been determined.

The lawsuit was originally filed by John Hendrix, a former JM Eagle employee, under the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.

JM Eagle plans to appeal.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.