Two more lawsuits foiled over Trinity's E.T. Plus guardrail system

There could be more potential trouble for Dallas-based Trinity Industries -- two more lawsuits have been filed in federal court over the company's controversial E.T. Plus highway guardrail system.

The lawsuits filed accuse the company of making materially false and misleading statements about the E.T. Plus guardrail system and failing to disclose adverse facts about the company's business.

The suits also specifically name the CEO, Timothy Wallace, and CFO, James Perry. Last week, reports of a federal criminal investigation sent Trinity's stock downward.

One suit says, "After the company confirmed the Justice Department had initiated an investigation into Trinity, shares declined an additional 14%.”

The suit claims the company's "liabilities were understated and its financial projections were overstated."

FOX 4 started reporting on accidents all over Texas 2-and-a-half years ago. Victims claim in lawsuits the guardrail failed to act as a safety device and instead impaled the vehicle, sometimes killing the driver.

Last October, a federal jury in east Texas in a whistleblower case found Trinity cheated taxpayers for failing to disclose critical design changes to the Federal Highway Administration.

The government ordered new crash tests, and in March, the E.T. Plus passed those tests, but even the testing has come under fire by critics.

A Trinity spokesman told FOX 4, "At this point it would not be proper to comment on this litigation."

 

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