Caterpillar unit cheated customers, tossed evidence into ocean: WSJ


A unit of Caterpillar Inc. admitted that it cheated clients by performing pointless repairs to their railcars and pleaded responsible to dumping brake footwear and different elements into the ocean to cover proof, in line with courtroom paperwork.

United Industries LLC, a part of Caterpillar’s Progress Rail Providers unit, agreed to pay a felony fantastic of $5 million in addition to a complete of $20 million in restitution to 3 railcar-proudly owning corporations: TTX Co., Greenbrier Cos. and the Pacer Worldwide unit of XPO Logistics Inc.XPO zero.89%.

The high-quality and restitution are modest for a big firm like Caterpillar, however the case represents a blow to its status for high quality service.

The Illinois-based mostly manufacturing big entered its responsible plea in U.S. District Courtroom for the Central District of California Thursday afternoon.

Caterpillar stated it had “taken corrective motion towards staff concerned on this matter” and “enhanced its compliance program.” The corporate stated it hadn’t discovered any “questions of safety associated to this matter.”



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