A New Jersey whistleblower formerly employed by the J-M Manufacturing Company, the leading supplier of PVC pipes in the United States and Canada, is in line to receive over six million dollars from a settlement reached in negotiations with J-M’s parent company, Formosa Plastics Corporation, USA (FPC-USA). The case alleges that the company knowingly supplied sub-standard piping to over 80 plaintiffs in California, Massachusetts, Nevada, and Virginia. FPC-USA paid a total of $22.5 million for violations stemming from their role in supplying the resin used in the manufacturing of the PVC pipes. A proposal for settlement allocation is due to be decided on this month by Los Angeles District Court Judge, George Wu, and if proceeds as expected, the New Jersey engineer formerly employed by J-M Manufacturing will receive approximately 28% of each plaintiff’s award for an estimated total of $6.29 million.
The lawsuit was originally filed in February, 2010, after John Hendrix came forward to report J-M Manufacturing for consciously manufacturing and distributing PVC piping that did not meet industry standards for strength and durability. J-M Manufacturing allegedly made the PVC piping with resin supplied by FPC-USA after the company switched to a lower grade resin. Both companies were accused of knowing that the new resin did not meet the industry standards set by Underwriters Laboratories and the American Water Works Association. These low grade sewer and water pipes were then sold to entities in Nevada, Virginia, Delaware, Tennessee and California, including the cities of Sacramento, San Diego, San Jose, Los Angeles and over 30 other townships and municipalities.
FPC-USA maintains that their product was not substandard quality, but agreed to the settlement to avoid further legal costs associated with extended litigation. In preliminary trials, FPC-USA was dismissed with prejudice after agreeing to the settlement, but J-M Manufacturing Company, now known as JM Eagle, argued with the amount of the settlement because they stand to possibly owe billions of dollars in damages. The plaintiffs in the case petitioned the court in November of this year to approve their allocation proposal of the FPC-USA funds by December 14, 2015. In addition to the $22.5 million settlement, FPC-USA will pay an additional $5.5 million to cover the costs of plaintiffs’ court and attorney costs. The second phase of the trial continues for JM Eagle.
South Jersey Employment Lawyers at Sidney L. Gold & Associates help Whistleblowers claim Justice and Compensation
Blowing the whistle on illegal activity against a major corporation is never easy. The process is overwhelming, the laws are prudent and it is vital that an experienced and knowledgeable attorney is involved at every step to ensure that your legal rights and confidentiality are protected. South Jersey employment lawyers at Sidney L. Gold & Associates have the experience and vast knowledge that you need to help you bring about a successful claim. Call us at 215-569-1999 or complete our online contact form to schedule a consultation today. Our offices are conveniently located in Center City Philadelphia, allowing us to serve clients throughout Pennsylvania, New Jersey and New York.