Iron Mountain Resolves False Claims Act Lawsuit for $44.5 Million

January 21, 2015 — Highly prized government contracts can be extremely profitable for the service companies involved. But contractors must deal fairly and honestly with the government. It is a violation of the False Claims Act for government contractors to ignore the terms of their contracts with the General Services Administration (GSA) through the Multiple Award Schedule (MAS) program. When contractors cheat the American taxpayers by failing to honor their contracts, the qui tam provisions of the False Claims Act authorize insider employees and others to bring a whistleblower lawsuit on the government’s behalf. At the time the case is tried or settled, the tipster is entitled to a share of any monies received.

Records Storage Companies Allegedly Overbilled Government for More Than 10 Years

Two affiliated records storage companies based in Massachusetts have settled a False Claims Act lawsuit for $44.5 million. Iron Mountain Incorporated and Iron Mountain Information Management LLC (Iron Mountain) allegedly overcharged federal agencies for records storage services for more than a decade.
Iron Mountain reportedly entered into contracts with the GSA through the MAS program, which streamlines government contracts for obtaining frequently used goods and services. Between 2001 and 2014, the whistleblower lawsuit alleged, Iron Mountain violated its MAS contract with the government by failing to disclose accurate information about the company’s commercial sales practices in contract negotiations. Iron Mountain also allegedly failed to offer lower prices to the government during its performance of the contract, thereby breaching the GSA contract’s price reduction clause. In addition, Iron Mountain allegedly billed the government for storage procedures that satisfied heightened National Archives and Records Administration requirements even when these more costly procedures were unnecessary.
The two whistleblowers filed their case in California. Brent Stanley was previously employed with Iron Mountain and Patrick McKillop worked in the records management industry. As a reward for collaborating with the government in this case, the two men will share a considerable portion of the government’s $44.5 million recovery — $8,010,000.

Whistleblowers Notify Government about False Claims Act Violations by Government Contractors

While Waters & Kraus is not handling this particular case involving government contractor fraud, we are representing whistleblowers in similar qui tam lawsuits. If you have comparable claims against a different government contractor, contact us or call our qui tam attorneys at 855.784.0268. Our qui tam lawyers, like Michael Armitage and Gary Paul in the firm’s office in California, where this False Claims Act lawsuit was filed, are committed to advancing and protecting informants’ interests in whistleblower lawsuits.
To learn more about our practice and how we can work together to notify the government about fraud and abuse, contact us by email or call 855.784.0268.

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