Steel Importer Settles False Claims Act Allegation of Duty Evasion

Steel parts importer Smith-Cooper International settled a False Claims Act allegation raised by Island Industries that the importer evaded antidumping duties, according to a March 29 filing in the U.S. District Court for the Central District of California. In 2017, Island accused SCI of failing to pay antidumping duties on its welded outlet imports from China while also alleging that SCI submitted false information to the U.S. relating to the applicability and amount of duties owed. The initial lawsuit also accused four companies and 11 individuals of violating the FCA due to duty evasion. In the joint motion to dismiss the case, the case was described as having been vigorously litigated. Now a confidential settlement between SCI and Island has been submitted and accepted by the court. Allied Rubber and Gasket Co. was dismissed from the case in August 2020 while litigation continued with the remaining parties.