One of the largest document-shredding and information management companies in the country is paying $44.5 million to settle allegations that it falsely billed federal agencies for storage services.
Boston-based Iron Mountain Incorporated and its subsidiary, Iron Mountain Information Management LLC, settled out of court Dec. 19, 2014, to end a lawsuit filed in California under the False Claims Act for overcharging federal agencies for storing documents and data.
“My office will continue working diligently to make sure American taxpayers are getting the best value for every dollar spent,” Acting Inspector General Robert C. Erickson for the General Services Administration said Thursday concerning the settlement.
The Iron Mountain companies were contracted through a GSA program from 2001 to 2014. The civil suit claimed that they gave the agency inaccurate information about its sales practices and did not reduce prices as required by their contracts. The suit also claimed that Iron Mountain’s storage facilities did not meet federal guidelines.
“This settlement illustrates our commitment to protecting the integrity of federal contracting programs,” said U.S. Attorney Benjamin B. Wagner for the Eastern District of California.
Two whistleblowers that filed the lawsuit under a provision of the False Claims Act will receive a portion of the settlement. Brent Stanley, a former Iron Mountain employee, and Patrick McKillop, who worked in the records management industry, will collectively receive more than $8 million.
The settlement was a joint effort between several federal investigation offices, including agencies within the Department of Justice, the GSA Inspector General and components of the Department of Defense.
Iron Mountain and another firm settled another False Claims Act suit in July 2013. In that litigation, Iron Mountain was accused of defrauding the government by failing to shred sensitive documents as required by their contracts.
