Escobar Wrecks $663M Guardrail FCA Judgment At 5th Circ.

Law360, Los Angeles (September 29, 2017, 10:52 PM EDT) -- The Fifth Circuit on Friday overturned a $663 million judgment against Trinity Industries Inc. in an FCA suit over allegedly defective highway guardrails, finding that a recent U.S. Supreme Court ruling in Escobar undermined the whistleblower’s case because the government — the purported victim — kept paying the claims.

Citing a June 2016 high court ruling in Universal Health Services v. Escobar that laid out a broader standard for materiality in False Claims Act suits, the Fifth Circuit found that even after hearing all the evidence in whistleblower and sometime Trinity competitor Joshua Harman’s case, after the jury’s verdict and independent...

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Court

Appellate - 5th Circuit

Nature of Suit

1370 Other Fraud

Date Filed

August 31, 2015

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