Iron Mountain Settles False Claims for $44.5M; Whistleblowers to Get $8M
Iron Mountain has agreed to pay $44.5 million to settle allegations that the company overcharged federal agencies for record storage services under General Services Administration (GSA) contracts, the U.S. Department of Justice announced today.
This settlement relates to contracts under which Iron Mountain provided record storage services to government entities through GSA’s Multiple Award Schedule (MAS) program. The MAS program provides the government with a streamlined process for procurement of commonly used commercial goods and services. The settlement resolves allegations that Iron Mountain failed to meet its contractual obligations to provide GSA with accurate information about its commercial sales practices during contract negotiations, and failed to comply with the price reduction clause of the GSA contracts by not extending lower prices to government customers during its performance of the contracts. It also resolves an allegation that Iron Mountain charged the United States for storage meeting National Archives and Records Administration requirements when the storage provided did not meet such requirements.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and receive a portion of the recovery. The civil lawsuit was filed in the Eastern District of California by Brent Stanley, a former Iron Mountain employee, and Patrick McKillop, who worked in the records management industry. Collectively, they will receive $8.01 million.
The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments. We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud. Read more about our expertise in False Claims Act cases and how you can take action.