This is where you will find the facts behind the False Claims Act lawsuit filed by a disgruntled former employee alleging that JM Eagle made sub-standard pipe that was installed in municipal water and sewer systems.
The company believes the case should never have been brought, and described it as an example of the “legal gold rush” that critics said would result from the expansions of the False Claims Act in recent years.
JM Eagle was subjected to years of false and scurrilous allegations by the former employee who had been fired for soliciting a kickback, and to years of smear attacks that were meritless.
Since the case was filed, the federal government, District of Columbia and seven states have withdrawn from the case or declined to join it. The District of Columbia and the Los Angeles Department of Water and Power found that they didn’t even have any plastic pipe in their municipal systems.
The state attorneys general of California, Delaware and Tennessee have publicly stated that their own investigations of JM pipe yielded no real issues. In 2010 The Palm Beach Post reported that Florida’s attorney general had declined to join lawsuit saying he agreed with the U.S. Justice Department that the case is without merit.
JM Eagle suspects that many other municipal governments would have dropped out, but to do so they would have to hire attorneys and make numerous court filings. For these small cities and municipal water districts, it was easier and cheaper to simply do nothing.
JM Eagle is so highly confident that its pipe will not fail that it has guaranteed it for 50 years, which is unprecedented in the industry. Both JM Eagle leadership and its more than 1,200 employees are proud of the quality and reliability of the products that it makes.
We felt it was of utmost importance to defend the reputation of the company in the face of meritless allegations and to honor the integrity, skill and dedication of our employees. If you are interested in learning more about this case, this web site will provide you with the facts and the documents to back them up
JM Eagle sent a letter to its customers on Dec. 4, 2013 informing them that the statements the plaintiffs and their attorneys made in press releases after the recent jury verdict were false and misleading. The letter explained the narrow scope of the jury verdict and exactly how the statements by plaintiffs and their lawyers falsely characterized not only the verdict, but the evidence presented in court. You can read the full letter here
Major General (Ret.) Merdith W.B. Temple’s Report on JM Eagle’s Quality Control and Quality Assurance Systems
JM Eagle retained the former head of the U.S. Army Corps of Engineers to review its quality control and quality assurance systems. Major General (Ret.) Merdith W.B. Temple agreed to the assignment with the understanding that JM Eagle would have no say in the final content and conclusions of his report.
During his review, Gen. Temple visited JM Eagle plants and met with the director of a nationally recognized independent testing laboratory that has conducted more than 1,000 tests on JM Eagle products submitted by not only by the company but third parties such as regulatory agencies, pipe installers, owners of piping systems, and municipal water utilities.
“Based on everything I personally observed and learned while conducting my review, I do not believe that any allegations of poor quality products from JM Eagle could be credible or have merit,” Gen. Temple concluded in his report.
JM Eagle Will Appeal Jury Verdict in False Claims Act Case Because Jury Was Not Permitted to See All of the Evidence
Former Head of the U.S. Army Corps of Engineers Said He Could Not See How “any allegations of poor quality products could be credible or have merit”
Los Angeles, CA – November 14, 2013 – JM Eagle, the world’s largest maker of plastic pipe, said that it would immediately appeal today’s jury verdict in a lawsuit brought by a former disgruntled employee, who alleged that the company made false claims in relation to its production of pipe he claimed to be substandard.
“While we respect and thank the jury members for their service, we disagree strongly with the verdict,” said Neal Gordon, JM Eagle’s Vice President of Marketing and Waterworks Sales. “We believe we have valid grounds for an appeal, which we will file as immediately as possible, and we look forward to having this verdict reviewed and set aside.”
“During a seven-week trial with over 20 witnesses, JM Eagle presented irrefutable evidence that our products meet and even exceed national standards based on hundreds of independent tests and audits by outside certifying agencies,” Mr. Gordon said.
FCA Lawsuit Information Center
A disgruntled former employee and a FCA law firm have teamed up to make false allegations about JM Eagle and our products. Read the background here.
States Withdraw from Lawsuit: “No Merit”
Federal and state authorities have declined to join the lawsuit after conducting their own investigations, demonstrating the weakness of the case against JM Eagle. Click here to read more.