Philip Morris Says Amtrak 'Cannibalized' Trains, Owes $93M

Law360 (November 8, 2019, 1:45 PM EST) -- Philip Morris alleged in New York federal court Thursday that Amtrak owes $92.9 million for breaching a $250 million contract for a fleet of trains used in the Northeast Corridor route from Washington to Boston, claiming the company took them out of commission and stripped them for parts. 

Philip Morris Capital Corp. and HNB Investment Corp. alleged that National Railroad Passenger Corp., better known as Amtrak, leased eight locomotives and six high-speed trains. Amtrak ultimately claimed the trains were unreliable, but inspectors found the trains had been “cannibalized” for parts. The complaint alleges that Amtrak has denied any default and has...

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