A class action lawsuit has been filed against Trinity Industries on behalf of investors who purchased or otherwise acquired the guardrail maker’s securities between Feb. 16, 2012 and Apr. 29, 2015.
Free Guardrail Lawsuit Evaluation: If you or a loved one has been injured in a guardrail accident, you should contact our law firm immediately. You may be entitled to compensation by filing a suit against the manufacturer of the guardrail and our lawyers can help.
What’s the Problem?
The lawsuit alleges that Trinity Industries:
- Violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934;
- Made false and/or misleading statements, and
- Failed to disclose that it made design changes to its ET-Plus guardrail system in 2005 without notifying the Federal Highway Administration (FHWA).
An article published in The New York Times on Oct. 12, 2014, reported that at least 3 states had banned installation of Trinity ET Plus guardrails over safety concerns stemming from a design change the company secretly made in 2005 that allegedly caused the devices to lock up during collisions, spearing oncoming vehicles rather than ribboning out and absorbing the impact of the crash.
A day after the article was published, Trinity’s stock fell $2.07 per share, or 5.9%. On Oct. 14, the Times reported that the State of Virginia threatened to ban Trinity guardrails unless the company conducted additional safety tests. Trinity’s stock price fell another $0.53 per share, or 1.5%, as a result.
On Oct. 20, a Texas jury ruled that Trinity deliberately withheld information from the FHWA about the changes made to the ET Plus, and defrauded the federal government out of $175 million. Trinity’s stock fell $4.45 per share, or 12.3%, in response to this news.
On Oct. 24, the company announced that it would stop distributing its ET Plus guardrails until additional crash tests could be completed. Following this announcement, Trinity’s stock fell another $0.46 per share.
On April 22, 2015, the U.S. Justice Department (DOJ) launched a criminal investigation into the use of Trinity ET Plus guardrails linked to at least 8 eight deaths. On this news, the company’s stock fell $3.43 per share, or approximately 9.4%. Two days later, Trinity confirmed that it was the target of an investigation. Its stock plunged another $4.66, or 14%, as a result.
On April 29, Trinity received a subpoena from the DOJ regarding “its allegedly defective guardrail safety system” and that the government sought “documents from 1999 and later regarding Trinity’s guardrail end terminals[.]” On this news, Trinity’s stock fell $0.98, or 3.49%, on heavy trading volume.
Do I Have a Highway Guardrail Lawsuit?
The Product Liability Litigation Group at our law firm is an experienced team of trial lawyers that focus on the representation of plaintiffs in Highway Guardrail Lawsuits. We are handling individual litigation nationwide and currently accepting new guardrail injury and death cases in all 50 states.
Free Highway Guardrail Lawsuit Evaluation: Again, if you or a loved one has been injured in a guardrail accident, you should contact our law firm immediately. You may be entitled to compensation by filing a Guardrail Injury Suit and our lawyers can help.