08.12.2017 04:46:44
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Caterpillar Reportedly To Pay Millions For Crimes At California Rail Facility
(RTTNews) - A unit of Caterpillar Inc. (CAT) admitted that it cheated customers by performing unnecessary repairs to their railcars and pleaded guilty to dumping brake shoes and other parts into the ocean to hide evidence, the Wall Street Journal reported citing court documents.
Report noted that United Industries LLC, part of Caterpillar's Progress Rail Services unit, agreed to pay a criminal fine of $5 million as well as a total of $20 million in restitution to three railcar-owning companies: TTX Co., Greenbrier Cos. and the Pacer International unit of XPO Logistics Inc.
The Illinois-based manufacturing giant entered its guilty plea in U.S. District Court for the Central District of California Thursday afternoon.
Caterpillar reportedly said it had "taken corrective action against employees involved in this matter" and "enhanced its compliance program." The company said it hadn't found any "safety issues related to this matter."
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Aktien in diesem Artikel
Caterpillar Inc. | 348,00 | -0,85% | |
XPO Logistics Inc | 124,40 | -1,27% |