American Ramp Company, Inc. Sued for Over $18 Million for Ongoing Fraud Against Federal, State, and Local Governments

On December 20, 2010, the law firm of Dermer Behrendt filed suit in Federal Court in Los Angeles against American Ramp Company, Inc. (“ARC”) to recover over $18 million in damages and civil penalties on behalf of the United States and seven states including cities and other public entities therein, arising from ARC’s alleged false statements, claims, and actions allegedly constituting fraud under the various false claims statutes. The lawsuit was recently unsealed and is now public. The case number is 2:10-cv-09785-DSF-AGR.

The complaint alleges that “ARC and its management, has placed profits over people in the marketing and sales of its primary product, its “Pro Series” steel ramp skatepark equipment.” ARC is alleged to have sold the Pro Series Equipment knowing that the equipment would not meet its own product specifications including: (1) fastener-free riding surfaces and (2) third-party engineering tests stating that the product meets certain flood, wind, and weight bearing standards that ARC itself created.

DISCLOSURE STATEMENT: ALLEGATIONS MADE IN A LEGAL PROCEEDING ARE NOT STATEMENTS OF FACT UNTIL PROVEN IN A COURT OF LAW.