Investor files suit against Trinity Industries, seeks class-action status (re: defective guardrails)
WASHINGTON—Last September, shares of Dallas-based Trinity industries were on a roll, closing at over $50, a five-year high, on Sept. 19. But when word came down a month later that a federal jury in Marshall, Texas had sided with a whistleblower’s claims that the company had defrauded the U.S. government, that price began a step dive.
Friday’s price was just under $30, and now investors are suing to recoup some of the money they say they’ve lost during the ensuing sell-off.
One such case was filed in a Dallas federal court Friday on behalf of investor Richard J. Isolde and, if the lawyers can succeed in having the case certified as a class-action suit, all other similarly-situated investors.
The suit alleges that during 2012 and 2013, as Trinity’s shares’ price was rising, the company made false statements that shielded the risk associated with its sale of the EZ-Plus guard rails.
