South Carolina Construction Companies Face Legal Battles Over Fraud

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

$10 million. The lawsuit asserts that Berkeley County neglected to address permit issues that delayed crucial sewer upgrades, exhibiting negligence concerning undisclosed impediments discovered during the construction process.

Political Leaders in the Crosshairs of Legal Scrutiny

Call for Accountability and Quality Assurance

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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