Nucor Beats Bait and Switch Fraud Claim, Shows Contract Breach

Nucor Building Systems Texas showed that Direct Steel LLC breached a contract for supplies under a US Army Corps of Engineers project, and secured dismissal of Direct Steel’s False Claims Act count, a federal district court said.

The US Army Corps of Engineers selected Direct Steel to construct pre-engineered metal buildings. Direct Steel subcontracted with Nucor to provide the materials. Nucor owns all assets and liabilities of American Buildings Company, the named defendant.

Direct Steel alleged that that Nucor violated the FCA by engaging in a “bait and switch” price scheme. Nucor knowingly submitted falsely low quotes up front and ...