Preventive Maintenance / Supply Chain Management

Report: Caterpillar will pay millions for crimes at California rail facility

By the Peoria Journal Star

Dec 08, 2017

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A wholly owned subsidiary of Caterpillar Inc. will pay tens of millions of dollars for intentionally cheating its customers with unnecessary repairs and dumping rail car parts into the ocean to cover up its actions.

The Wall Street Journal reported on Thursday that United Industries LLC, part of Caterpillar’s Progress Rail Services unit, will pay a $5 million criminal fine and $20 million in restitution.

Caterpillar 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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