News Summary
The construction industry in South Carolina is embroiled in legal disputes following allegations of fraud and deficiencies in homebuilding. Thompson Construction Group has settled for over $190,000 due to fraudulent claims linked to disaster recovery projects. Meanwhile, major builders like D.R. Horton and Lennar face rising lawsuits from homeowners dissatisfied with declining construction quality. The surge in litigation highlights a critical need for accountability and reform within the industry as homeowners contend with unresolved defects and legal entanglements.
South Carolina Construction Companies in Legal Hot Water Over Fraud and Defects
The construction industry in South Carolina is currently facing a storm of legal nightmares as allegations of fraud and homebuilding defects come to light. Federal prosecutors recently announced a significant settlement with Thompson Construction Group, a construction firm from Sumter, South Carolina, over fraudulent claims linked to disaster recovery projects in West Virginia following the catastrophic floods of 2016.
Settlement Shakes The Foundation of Thompson Construction Group
Thompson Construction Group has agreed to pay more than $190,000 to the United States in a settlement designed to resolve these grave allegations. The financial breakdown reveals that the company will cough up $95,535 as restitution and an equal amount in double damages, imposed under the False Claims Act. Prosecutors contend that the construction firm falsely certified homes as compliant with essential contract conditions, even as the requisite water management systems were allegedly left incomplete.
This exploration into Thompson’s actions comes in the wake of a presidential disaster declaration for West Virginia in June 2016, where severe flooding displaced thousands of residents. The company obtained contracts to rebuild homes with crucial drainage systems and sump pumps, only to veer away from the set regulations, igniting the current legislative fallout.
Surge in Lawsuits Against Major Builders
In particular, residents of a community developed by Lennar are sounding alarms over severe mold problems. Complaints about the company’s slow response to remedy these chronic issues are fueling homeowners’ frustrations and further complicating their living conditions.
Lack of Accountability Fuels Homeowner Litigation
The lack of accountability from these large contractors is contributing to a dramatic uptick in litigation, as homeowners find themselves facing significant financial burdens caused by construction defects that have gone unaddressed. Many individuals report feeling misled about their warranty coverage options, prompting them to seek legal counsel to learn about their rights in confronting home defects.
As the lawsuit landscape evolves, dozens of homeowners are now grappling with pressing financial difficulties tied to unresolved issues in their new homes, highlighting the urgent need for construction reform.
Costly Delays and Legal Fisticuffs
Political Leaders in the Crosshairs of Legal Scrutiny
Call for Accountability and Quality Assurance
Deeper Dive: News & Info About This Topic
HERE Resources
South Carolina Construction Company Settles Fraud Allegations
Thompson Construction Group Settles for $191,070 Over Fraud Claims
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Charleston Design District Set to Transform Navy Yard
Legal Developments in Belleville: Celebrations and Controversies
New Sheriffs in Charleston and Dorchester Counties Aim for Community Reform
Additional Resources
- WCHS TV
- Wikipedia: Construction Defects
- Live 5 News
- Google Search: construction defect claims
- Count on 2 News
- Google Scholar: construction lawsuits
- Charleston City Paper
- Encyclopedia Britannica: construction industry
Author: STAFF HERE CHARLESTON
The CHARLESTON STAFF WRITER represents the experienced team at HEREcharleston.com, your go-to source for actionable local news and information in Charleston, Charleston County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Spoleto Festival USA, Charleston Wine + Food Festival, and the MOJA Festival. Our coverage extends to key organizations like the Charleston Metro Chamber of Commerce and the Charleston Museum, plus leading businesses in tourism and maritime industries that power the local economy such as South Carolina Ports Authority and the Charleston Visitor Center. As part of the broader HERE network, including HEREaiken.com, HEREbeaufort.com, HEREchapin.com, HEREcharleston.com, HEREclinton.com, HEREcolumbia.com, HEREgeorgetown.com, HEREgreenwood.com, HEREgreenville.com, HEREhiltonhead.com, HEREirmo.com, HEREmyrtlebeach.com, HEREnewberry.com, HERErockhill.com, HEREspartanburg.com, HEREaustin.com, HEREcollegestation.com, HEREdallas.com, HEREhouston.com, and HEREsanantonio.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
