RPM Intl to Settle Contract Fraud Claims for $61M; Whistleblower to Get $10.9M
Ohio-based RPM International Inc. and its subsidiary, Tremco Inc., have agreed to pay $60.9 million to resolve allegations that Tremco knowingly submitted or caused the submission of false claims in connection with contracts with the General Services Administration (GSA), the U.S. Department of Justice announced last week. Tremco is a manufacturer of construction products and services.
The government alleged that Tremco knowingly violated its contractual obligations to provide GSA with current, accurate and complete information about its commercial sales practices, to report changes in discounts to comparable commercial customers and to pass those discounts on to government customers. Tremco allegedly failed to provide the government with price discounts given to non-federal government customers and also allegedly marketed expensive materials to government purchasers without disclosing that the same materials were available at a lower cost that were manufactured and sold by the company. As a result, the government allegedly paid more than it should have for Tremco’s services and products. In addition, Tremco allegedly improperly marketed generic products as a superior line of the same product and used a defective adhesive formula in its roofing systems.
The lawsuit was originally filed by former Tremco vice president Gregory Rudolph, under the whistleblower provisions of the False Claims Act. The False Claims Act allows private citizens with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. Rudolph will receive $10.9 million as his share of the settlement.
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.