Wabash has resolved the Missouri product‑liability case that produced one of trucking’s most-watched “nuclear verdicts,” finalizing a settlement that caps the manufacturer’s cash contribution at $30 million while insurers pick up the rest, according to recent disclosures. The agreement follows a year of post‑trial maneuvering and converts a headline $462 million courtroom setback into a manageable payout for the trailer builder.
The settlement, reached Oct. 9 and made public through subsequent coverage this week, also unwinds much of the balance‑sheet damage Wabash recognized after the jury award. Accounting impacts include an $81.2 million reduction of a prior charge, per details cited from the securities filing. The deal does not include any admission of liability by the company, and it brings the long-running dispute to a close.
Context matters: the jury’s September 2024 verdict had included $450 million in punitive damages before a Missouri judge in March 2025 cut that portion to $108 million. Even after that reduction, the judgment remained a nine‑figure threat for an OEM supplying equipment to fleets that are themselves navigating higher insurance costs. The settlement recasts that exposure as a defined, insurer‑buffered outflow and removes uncertainty that had loomed over Wabash’s operations and partners.
Why this matters for carriers and equipment buyers
- Product exposure travels with the trailer. The case sprang from a 2019 rear‑impact underride crash involving an older, compliant trailer. The settlement underscores how plaintiffs’ strategies can shift liability toward equipment design and documentation years after manufacture. Fleets should keep spec sheets, maintenance records and retrofit histories organized and retrievable.
- Insurance strategy is now a core procurement input. Wabash’s outcome hinged on layered insurance absorbing most of the cost beyond the $30 million contribution. For fleets, that reinforces the value of reviewing umbrella limits, excess layers and contractual indemnity with OEMs, dealers and upfitters before equipment hits the road.
- Pricing and availability stability. By removing a litigation wild card, Wabash can redirect focus to production, parts and service planning. That reduces the risk of sudden margin recapture via price surcharges or elongated lead times tied to legal uncertainty—concerns many procurement teams had flagged after the original verdict.
The bigger legal climate hasn’t cooled. This week’s reporting around the Wabash settlement arrives as nuclear‑verdict risk remains a top concern for trucking executives and risk managers, with eight‑figure awards continuing to surface and drive up coverage costs. In practice, that means fleets should keep investing in telematics, camera systems and documented safety programs—not just for prevention, but to preserve defensible evidence if a case heads to trial.
Bottom line for the industry: Converting a nine‑figure judgment into a finite, mostly insured settlement is a material de‑risking event for a major trailer supplier. For fleets, the message is twofold—tighten your own liability posture, and expect OEMs to double down on documentation and safety narratives around equipment performance. That’s where courtroom battles are increasingly fought—and where the difference between an existential verdict and a contained outcome can be decided.
Sources: FreightWaves, Trucking Dive
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