Dow Chemical Agrees to Pay Over $450K for Alleged Violations By Former Subsidiary

Dow Chemical has agreed to pay over $450,000 dollars for alleged violations by one of its former subsidiaries, Poly-Carb Incorporated. The subsidiary reportedly falsified testing results in connection with several road construction projects in Minnesota, many of which were federally funded.

The incidents were violations of the federal False Claims Act and Minnesota False Claims Act. The allegations state between 2012 and 2015, Poly-Carb provided enamel paint products for several road construction projects throughout Minnesota.

The government contends the subsidiary failed to follow contract specifications and applicable rules by fabricating test results. They also claim signatures and documentation were forged for the enamel products.

The proceeds of the settlement will be divided between the federal and state governments.