Robbins Arroyo LLP Is Investigating the Officers and Directors of Trinity Industries Inc. (TRN) on Behalf of Shareholders
SAN DIEGO and DALLAS, Oct. 29, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of Trinity Industries Inc. (NYSE: TRN) breached their fiduciary duties to shareholders. Trinity provides various products and services for the energy, transportation, chemical, and construction sectors in the United States, Canada, Mexico, the United Kingdom, Singapore, and Sweden.
View this press release on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/trinity-industries-inc
Trinity Found Liable for Damages incurred by U.S. Government
On October 20, 2014, a federal jury found Trinity liable for hiding information from the U.S. Federal Highway Administration over changes made to the company's ET-Plus guardrail system and failing to properly test units containing the modifications. Specifically, the jury found that the government accrued $175 million in damages because it was forced to reimburse states for buying thousands of devices that were not approved. Under the law, Trinity is potentially liable for three times the amount of damages, for a total of $525 million.
The guardrail system consists of a flat piece of steel at the front of the guardrail that is intended to protect passengers in the event of a crash. The unapproved design changes to the ET-Plus system, made in 2005, consisted of shrinking the end guardrail terminal from five inches to four inches. While the change was a cost effective measure for Trinity, with projected savings of $2 per guardrail or $50,000 per year, safety concerns are paramount, including whether the change in design has increased the probability of passenger impalement upon impact. Since the verdict, not only have multiple states banned the use of the ET-Plus system, the U.S. Federal Highway Administration has ordered new tests of Trinity's guardrail system and Trinity has stopped shipments of its product until the testing is completed.
In light of this news, Robbins Arroyo LLP is investigating whether Trinity's board of directors breached its fiduciary duties to shareholders by failing to get proper approval for the change and whether the company adequately tested the safety of its product.
Trinity Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, Ca 92101
[email protected]
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP
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