Iron Mountain Pays $44.5 Million to Settle False Claims Lawsuit

Iron Mountain Incorporated and Iron Mountain Information Management has paid $44.5 million to resolve allegations under the False Claims Act that Iron Mountain overcharged federal agencies for record storage services under General Services Administration (GSA) contracts.

Iron Mountain is a records storage company headquartered in Boston.

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The settlement relates to contracts under which Iron Mountain provided record storage services to government entities from 2001 to 2014 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 obtain a portion of the government’s recovery.

The civil lawsuit was filed in federal court in Sacramento, California by Brent Stanley, a former Iron Mountain employee, and Patrick McKillop, who worked in the records management industry.

Together they will receive $8,010,000.

McKillop, a former U.S. Marine who served in Vietnam, is currently an executive in the records management industry.

Stanley is a former Iron Mountain executive who is now a successful entrepreneur also working in the information management sector.

McKillop and Stanley were represented by Paul D. Scott and Lani Anne Remick of the Law Offices of Paul D. Scott, P.C. of San Francisco, California.

Iron Mountain was represented by McGregor Scott of Orrick Herrington in Sacramento.

“Mr. McKillop and Mr. Stanley are both extremely gratified by the resolution of the case and are pleased that the United States Government will also be saving very substantial sums in the future as a result of adjustments to the ongoing pricing in Iron Mountain’s GSA contracts,” Scott said. “I admire both of these men, who work in the same industry yet still had the courage to step forward and set things right for their fellow taxpayers.”

 

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