United Industries, a wholly owned subsidiary of Caterpillar Inc. will pay a $5 million criminal fine and $20 million in restitution for intentionally cheating its customers with unnecessary repairs and dumping rail car parts into the ocean to cover up its actions.
As reported in Transporation Times, and citing the Wall Street Journal, this division of Caterpillar’s Progress Rail Services unit made unnecessary repairs to rail cars owned by three companies: TTX Co., Greenbrier Co. and the Pacer International Unit of XPO Logistics Inc. The restitution will be split among them.
Employees of United Industries were encouraged to cause damage to the trucks in an effort to increase revenue for additional repairs. Techniques included such as smashing brake parts with hammers, gouge wheels with chisels and yank handles loose.
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