(Reuters) – A federal appeals court on Friday overturned a $663 million judgment against Trinity Industries Inc in a whistleblower lawsuit accusing the company of defrauding the federal government through the sale of defective guardrails.
The 5th U.S. Circuit Court of Appeals in New Orleans rendered judgment as a matter of law for Trinity, saying the finding of fraud underlying the judgment could not stand. The case had been brought under the federal False Claims Act.
Shares of Trinity rose $3.10, or 9.7 percent, to $35.00 in after-hours trading after the decision was issued.
Reporting by Jonathan Stempel in New York; Editing by Lisa Shumaker