June 15, 2000 North American Pipe Corporation
North American Pipe Corporation has agreed to pay $500,000 to settle claims asserted in a qui tam action filed by Stan Price, an independent salesman who formerly sold pipe manufactured by the company. The allegations of the case were the company sold untested pipe to the Defense Department and the Federal Bureau of Prisons. Under the terms of a contract, which the company had entered with the government, pipe to be sold to the government was required to be pressure tested in conformance with applicable industry standards.
As part of the settlement, Mr. Price will receive $400,000 for having filed the qui tam case.
See U.S. Dept of Justice Press Release 6/15/00