Jury Asks Trinity To Pay In Guardrail Case

(RTTNews) - Trinity Industries (TRN), a diversified industrial company, Monday said that earlier in the day a jury in the U.S. District Court for the Eastern District of Texas returned a verdict against the firm in a False Claims Act case. The jury awarded $175 million in damages.

The company is accused of failing to inform the Federal Highway Administration or FHWA about changes it made to a guardrail system. Joshua Harman, a guardrail installer in Virginia, was the whisleblower.

The company said it respects the jury's decision, but believes the decision cannot and will not withstand legal scrutiny.

"The Company strongly believes the courts will affirm its position," Trinity said in a statement.

The award of damages was based on the amount the U.S. government reimbursed states for Trinity's guard terminals. Reports indicated that the company may have to pay $525 million or even more, as the damages automatically triple under the law.

TRN closed down 12.3 percent on Monday at $31.63, and slid just over 2 percent in the extended trade.