O’Neal, Leeco win $117M in fraud suit

Jun 26, 2014 | 02:27 PM | Thorsten Schier

Tags  O'Neal Industries, Leeco Steel, Racketeer Influenced and Corrupt Organizations Act, Rico, lawsuit, Bill Jones, fraud, World Steel Unlimited General Purpose Steel

NEW YORK — Service center operators O’Neal Steel Inc. and Leeco Steel LLC have prevailed in their 2011 lawsuit against two steel suppliers and their owners alleging fraud, misrepresentation, negligence and breach of contract and warranty.

The companies were awarded $17 million under the Racketeer Influenced and Corrupt Organizations (Rico) Act and $100 million in punitive damages following a two-week trial in U.S. District Court in Alabama.

O’Neal had alleged that it received non-conforming steel for high-stress and safety-critical applications from World Steel Unlimited Inc. and General Purpose Steel Inc. that could have put the lives of U.S. military personnel serving in Afghanistan and Iraq at risk had it not been recalled and replaced with the correct-quality steel (amm.com, Jan. 25, 2011).....





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