California District Court Enters Final Judgment in False Claims Act Case Over Antidumping Duties on Outlets

The U.S. District Court for the Central District of California issued its final judgment in a case which found Japanese manufacturer Sigma Corporation, along with other companies, guilty of False Claims Act violations related to not paying antidumping duties. The final judgment comes after the final jury verdict in the case. Sigma was found liable for over $24.2 million in damages and civil monetary penalties exceeding $1.8 million.

Sigma already gave notice of its intent to appeal the case to the U.S. Court of Appeals for the Ninth Circuit (see 2201100030), before the final judgment cleared, in a bid to "preserve all appellate rights." The final judgment clears the way for the full appeal (United States v. Vandewater International Inc., et al., C.D. Cal. #17-04393).

In 2017, Island Industries accused Sigma and others of failing to pay antidumping duties on welded outlet imports from China while also alleging that they submitted false information to the U.S. relating to the applicability and amount of duties owed. Many of the other defendants, including Smith Cooper International Inc. and Allied Rubber and Gasket Co., were dismissed from the action (see 2103310033).