A federal jury in Los Angeles has unanimously agreed that J.M. Eagle, which claims to be the largest pipe manufacturer in the world, knowingly sold to government entities substandard plastic pipe used in water and sewer systems, according to Phillips & Cohen LLP, a major whistleblower law firm.
The amount owed to three states and 42 cities that joined in the whistleblower suit has not been determined. J.M. Eagle will also have to pay other states, cities, and water districts that did not participate in the suit.
In addition, Formosa Plastics, former owner of J.M. Eagle, will have to pay $22.5 million to the government entities. San Diego is one of the cities that will get paid as a result of the suit.