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Tennessee Concrete Company Agrees to Civil Settlement for False Claims Act Violations

On July 25, 2013, in U.S. District Court, Nashville, Tennessee, Sherman-Dixie Concrete Industries, Inc. entered into a civil settlement agreement to pay the United States $664,581 to settle False Claims Act allegations.

The settlement resolves allegations that Sherman-Dixie submitted false claims for payment to the United States for products that did not meet required specifications. These products included concrete end walls and catch basins that are typically used in and adjacent to roadway construction.

The United States alleged that Sherman-Dixie submitted these claims after repeatedly certifying that its products were in reasonable compliance and were produced pursuant to applicable procedures. However, many of the products did not meet specifications related to the strength and placement of rebar within the pre-cast products. Although Sherman-Dixie provided these products for projects primarily administered by the Tennessee Department of Transportation, a substantial portion of the funding for these projects was provided by the Federal Highway Administration (FHWA). 

In addition to the monetary payment, Sherman-Dixie has entered into a monitoring agreement with FHWA. The agreement requires Sherman-Dixie take certain compliance measures to reduce the likelihood of future violations of the False Claims Act and other procurement regulations.

We conducted this investigation jointly with the FBI and the United States Attorney's Office for the Middle District of Tennessee.