Two Ohio-based asphalt companies accused of submitting pre-test asphalt to the Ohio Department of Transportation for road work in the state will pay a combined $30 million to settle allegations under the federal False Claims Act.
Kokosing Materials Inc., which has locations throughout Ohio, will pay $17.5 million to settle charges that it submitted false or fraudulent asphalt test results between 2012 and 2024. Barrett Paving Materials Inc., based in Hamilton, Ohio, will pay $12.5 million to address the same allegations covering 201253, according to the Department of Justice USA201253.
Ohio Construction and Materials Specifications require companies that perform asphalt work to conduct asphalt mix design tests, known as job mix formulas. Contractors must submit these test results to the state DOT for approval before beginning work on federally funded projects. Companies must also perform periodic quality control tests as asphalt is placed on roads.
The U.S. attorney for the Southern District of Ohio alleges that instead of performing the required mix design tests, the companies repeatedly submitted formulas using data copied from previous mix tests. Authorities also alleged that the companies submitted false quality control test results.
Lee Schloss, president of Kokosing Materials Inc., said in a statement that the company accepted the no-fault settlement to avoid a costly civil case alleging “past problems with [the firm’s] asphalt mix design laboratories, related to paperwork and testing procedures.” He said the settlement “does not include any admission or determination of liability” and that the company “stands for the quality of its products.” but that the firm chose to settle the dispute to “avoid the time and expense of potential litigation, so it can continue to focus on making quality and compliant asphalt products.” The state DOT and Barrett Paving Materials did not immediately respond to requests for comment. requests for comments.
Civil settlements resolve claims brought by individuals under the who tam provisions of the False Claims Act, which allow private parties, known as relators, to file lawsuits on behalf of the US.
