Judge dismisses "pay-to-play" lawsuit against Terre Haute

A federal judge has made a decision in a case against the City of Terre Haute and others connected to the failed Powerdyne sludge-to-diesel contract.

Posted: Dec 24, 2018 11:56 AM
Updated: Dec 24, 2018 6:50 PM

TERRE HAUTE, Ind. (WTHI) – A judge has sided with the City of Terre Haute in a lawsuit involving a wastewater treatment plant project.

A federal judge has granted the motion to dismiss the Overseas Lease Group lawsuit. The company accused the city of a pay-to-play scheme, in which the mayor received benefits from groups with city contracts. Overseas Lease Group sued Plocher Construction Company, the City, and related groups.

The alleged fraud stems from the failed Powerdyne sludge-to-diesel contract.

Overall, the judge said Overseas Lease Group’s arguments weren’t strong enough. He also said New Jersey wasn’t the proper place for the lawsuit. In addition, the judge found the case shouldn’t have been filed as a consumer fraud lawsuit, as the company and its owner are not consumers in this case.

The judge dismissed the case with prejudice, so the company cannot file a new lawsuit in this matter.

Online records show the company has filed a notice of appeal.

Article Comments

Terre Haute
Clear
73° wxIcon
Hi: 79° Lo: 56°
Feels Like: 73°
Robinson
Clear
71° wxIcon
Hi: 77° Lo: 54°
Feels Like: 71°
Indianapolis
Scattered Clouds
73° wxIcon
Hi: 76° Lo: 56°
Feels Like: 73°
Rockville
Clear
73° wxIcon
Hi: 76° Lo: 55°
Feels Like: 73°
Casey
Clear
69° wxIcon
Hi: 76° Lo: 55°
Feels Like: 69°
Brazil
Clear
73° wxIcon
Hi: 77° Lo: 56°
Feels Like: 73°
Marshall
Clear
73° wxIcon
Hi: 77° Lo: 54°
Feels Like: 73°
A nice weekend shaping up!
WTHI Planner
WTHI Temps
WTHI Radar

WTHI Events