A former employee filed a lawsuit against the giant PVC pipe manufacturer JM Eagle. The company is one of the largest in the world and has 23 pipe plants in North America. He decided to pursue the case on his own and is now joined by other states and municipalities. This suit could have far-reaching implications for the company and the industries it serves. Read on to learn more. Here’s a closer look at the details of the lawsuit.
J-M Manufacturing
The whistleblower in the J-M Manufacturing Eagle PVC Pipes case is John Hendrix, a former employee. He filed a qui tam lawsuit, which is a type of class action lawsuit, alleging that the company sold substandard PVC pipes that were prone to bursting and cracking. He was eligible to receive 15 to 30 percent of all damages awarded in the lawsuit.
According to the lawsuit, the company allegedly deceived outside certification agencies. It cherry-picked testing samples that should have been randomly selected. JM Eagle failed its UL tests for nine years, and witness testimony confirms this. The company tried to convince UL to change the test used for certification purposes, but UL refused, instead testing only the compound that the pipe is made of. That’s why the company continues to face a lawsuit.
The company has admitted that it sold substandard plastic pipes. It has paid $22.5 million to settle the lawsuit. According to the lawsuit, the company falsely represented that its pipes met industry strength standards. In addition to that, the company also claimed that it didn’t suffer damages from the faulty plastic pipes. The company hid the failures from consumers because the plastic pipe was made of cheap material.
As a result, it was no surprise that the company faces a class action lawsuit for substandard PVC pipes. In the class action lawsuit, the plaintiffs claim that the company is responsible for causing damage to potable water systems in their communities. The lawsuit also alleges that the company intentionally sold substandard pipes. The company did so because of cost-cutting, but it also failed to meet previous standards.
The whistleblower filed the lawsuit after a former employee notified the Nevada Department of Public Works. The Nevada Department of Public Works investigated the allegations, which included substandard PVC pipes. However, the company denied these allegations. The company has not responded to the lawsuit, so the whistleblower is still entitled to a portion of the recovery. This decision should be reviewed in light of these facts. However, if the whistleblower is right, the whistleblower could receive a significant share of the monetary recovery.
Although the lawsuit was initially filed by a whistleblower, it only became public in 2010. By then, more than 1,700 filings had filled the docket, and dozens of hearings had taken place to determine whether the company lied about the quality of its products. The jury’s decision, which was reached in 2010, was followed by a settlement agreement between JM Eagle and its former parent Formosa Plastics. The lawsuit was ultimately settled for $22.5 million.
The lawsuit alleges that the company intentionally misled the public by selling substandard PVC pipes. The company cherry-picked samples for testing and continued using a less expensive manufacturing process. The result was a substandard product and increased profits. Those who suffered injury or property damage as a result of substandard pipes may be able to claim compensation for the costs incurred as a result. It’s not too late to file a lawsuit if you have purchased such pipes.
In the first lawsuit, John Hendrix raised concerns about the quality of the PVC pipes sold by J-M Manufacturing. The former engineer accused the company of falsifying test results and selling inferior products. The pipes should have lasted 50 years or more, but instead ruptured in just a year. The lawsuit aims to hold J-M accountable for the violations. And it’s important to note that this lawsuit was filed against the company in 2006.
In recent years, J-M Manufacturing Eagle has stepped up its manufacturing processes to ensure the integrity of its products. The company’s geographic reach and strength have expanded. This has allowed J-M Eagle to develop new products and processes. J-M Eagle recently announced a 50-year guarantee for its products. If they are unable to meet this deadline, the company will replace the product. This is a strong signal that the company stands behind its products more than any other manufacturer.
