A Georgia military contractor, Pyrotechnic Specialties Inc. or PSI, is accused of a conspiracy to defraud the government and to sell defective stun (or “flashbang”) grenades to the military and both state and federal law enforcement officials. Not only were three FBI agents injured, but PSI is accused to luring federal officials with gifts at stripper joints and other perks. Officials are now facing charges of conspiracy, money laundering, mail fraud and defrauding the government.
It is astonishing at this day and age that such a remarkably stupid series of actions would be taken by a company. PSI is accused of re-labeling and selling rejected grenades.
Three officials are named: CEO David J. Karlson, sales representative F. Brad Swann and production manager Daniel Ramone.
The problem with the grenade was that a plastic piece could crack and cause a seriously dangerous situation, including improper detonation. In one case, it exploded in a car with FBI agents.
Obviously, these guys are likely toast. They may, however, also face tort liability for a defective product. Here, both a design and manufacturing defect could be alleged. Indeed, grenade manufacturers have been sued in the past for product defects. One such case involving improper detonation was the McGonigal v. Gearhart case, here.
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