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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.

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Comments

MURPHYJUNK Nov. 15, 2013 @ 7:47 a.m.

maybe the funds for quality pipe was used up in kickbacks

1

Don Bauder Nov. 15, 2013 @ 12:33 p.m.

Murphyjunk: Kickbacks and boosting profits -- both, possibly. Best, Don Bauder

0

Burwell Nov. 15, 2013 @ 12:23 p.m.

Jan Goldsmith had nothing to do with winning the case: a private whistleblower law firm filed the case and the City of San Diego merely jumped in as a plaintiff. I don't think Jan Goldsmith wants to publicize this case. He doesn't want to attract attention to his failure to notify the insurance company about the condo owners claim against the city for corroded pipes. Now the city's on the hook for $30 million because Janno screwed up and UT San Diego is covering it up. Jan claims the smell from the pipes was not from city negligence, but from condo owners eating too much Mexican food. He saw no need to notify the insurance company for what he concluded was a dietary issue.

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Don Bauder Nov. 15, 2013 @ 12:38 p.m.

Burwell: Goldsmith had little if anything to do with winning the case. He just loves publicity; I suspect that's why he was quoted. To your second point: pipes should be able to withstand Mexican food. If our pipes can take it in stride, so should sewer pipes. Best, Don bauder

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