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Skatepark Fraud Lawsuit

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Herwig
Posted: Thu Feb 16, 2012 7:23 am Reply with quote
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Joined: 25 Apr 2010 Posts: 3675 Location: Hicksville :-), Lower Bavaria
http://www.americanrampcompanylawsuit.com/

“ARC is a skatepark equipment manufacturer that has the lion’s share of the steel equipment market – which is the lower-end of the market, with concrete parks at the high-end. ARC has claimed to generate approximately $10,000,000 per year in revenue, of which approximately 80% of ARC’s sales are from its “Pro Series” line of steel ramps.

“ARC has been engaged, since at least 2004, in a campaign of knowing misrepresentation about the safety of its Pro Series line of steel skatepark equipment. For at least six years, ARC has knowingly represented that this equipment, as advertised, meets its own specifications for structural soundness when it knows that it does not.

“ARC does so by communicating these requirements in “product specification” materials that it sends to prospective and actual customers, both directly, and through general contractors, independent sales agencies, and state contracts, with the intent that public entities receive and rely on the representations, promises, and statements therein. ARC not only makes these representations (which are part of the actual contracts constituting the “claims”) but it also consistently encourages, if not demands, that its customers to adopt them verbatim as part of their bidding specifications. ARC uses these false representations to create single bid or no bid contracts that allow it to generate super-competitive profits.

“ARC represents that its Pro Series is the “safest” because it can meet these loads without the “hundreds” of fasteners that other companies use (according to ARC). The use of fasteners is “hazardous” according to ARC’s own product catalogs.

“ARC’s specifications, which are the industry standard and have been for many years, require that a third-party, licensed professional engineer verify that the fastener-free equipment will meet the structural loads in its bid specifications.

“ARC, since at least 2004 and continuing to the current day, has rigged its testing regime to defraud its customers into believing that ARC’s equipment actually meets these specifications. In reality, ARC has never sought to have its equipment tested as “fastener free” all-steel equipment. Rather, ARC instructed its third-party engineer to test its equipment for structural soundness only with fasteners … ARC did this without informing its engineer of the representations that it has made regarding how the equipment is intended to be used or how the equipment is actually installed.

“As a result, ARC has fraudulently induced public entities to purchase millions of dollars worth of equipment — thereby putting the lives of children at risk and defrauding the public of badly needed funds. According to ARC’s own estimates, the Pro Series revenues amount to roughly $40,000,000 or more since 2004. Of that, approximately 15 percent of the Pro Series equipment sold was sold to the real parties. Accordingly, ARC, in addition to the civil penalties, is potentially liable for $18,000,000 in damages, after trebling.

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PAWN
Posted: Thu Feb 16, 2012 8:28 am Reply with quote
Joined: 06 Jul 2005 Posts: 4175
i just hope that this can put an end to prefab garbage. It won't but at least a strong point in going against a prefab park can be made in the future if these fools lose.

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slob-air
Posted: Thu Feb 16, 2012 9:43 am Reply with quote
Site Admin Joined: 27 Oct 2001 Posts: 63453 Location: S&B HQ
Fuck 'em right into the ground!

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alldayphila
Posted: Thu Feb 16, 2012 10:19 am Reply with quote
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Joined: 29 Jan 2010 Posts: 713
Total shit parks. They now offer pre-cast concrete parks that are real junk. They're involved in the bidding process for a park near me. I really hope they don't get the job. Thanks for posting.
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PAWN
Posted: Thu Feb 16, 2012 11:32 am Reply with quote
Joined: 06 Jul 2005 Posts: 4175
alldayphila, they've been for a while. I imagine it's spohn ranch that is bidding where you're talking about. We only have those here in Miami and it sucks. The parks blow, and though it's better than nothing, I refuse to be ok with it considering I've worked hard to try and get a real park built here. I hope all prefab production companies go bankrupt.

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slob-air
Posted: Thu Feb 16, 2012 3:38 pm Reply with quote
Site Admin Joined: 27 Oct 2001 Posts: 63453 Location: S&B HQ
I was just talking to an industry insider and he sad:

"It turns out that’s as close to a false lawsuit as you can get…it was launched by their competitors, & the cities that are named as having joined actually had no idea that they had been joined…pretty baseless, but I still love it!"

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ericman666
Posted: Sat Feb 18, 2012 5:35 pm Reply with quote
Joined: 26 Dec 2006 Posts: 372 Location: Maine
http://www.scribd.com/doc/48257277/Wh...p-Company-aka-ARC

if ArC is involved or not, all skatepark movements should send this out to the town council people and put it on the facebook page if you guys have one. get it out there any way you can.

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