JM Eagle in Legal Battle with States, Municipalities
JM Eagle is one of the few recent manufacturing success stories in Los Angeles, which has seen its industrial base shrink over the last two decades.
The company, which moved its corporate headquarters to Los Angeles in 2008, is the world’s largest maker of plastic pipe. Its products are used in water and sewage lines and electrical and gas distribution systems across the globe.
But now, JM Eagle finds itself in a protracted legal battle that is damaging its reputation and could perhaps cost the plastics powerhouse hundreds of millions of dollars in damages.
Nevada, Virginia, Delaware, Tennessee and 43 municipalities and water districts, including the Los Angeles Department of Water and Power, have joined a lawsuit accusing the company of manufacturing poor quality PVC pipe since at least 1997.
The whistle-blower lawsuit, unsealed in February, also accuses JM Eagle of falsifying quality assurance tests and misrepresenting the strength of its pipe to customers.
JM Eagle denies the allegations, and now is making aggressive efforts to clear its name.
To read the rest of this story from the Los Angeles Business Journal, click onto: https://www.labusinessjournal.com/article.asp?aID=145966