$44.5M Document Storage Settlement

By NE Docs | December 29, 2014

$44.5M Document Storage Settlement

The information and document storage company Iron Mountain has recently agreed to shell out $44.5 million dollars to settle allegations against the company in regards to overcharging federal agencies for their record storage services.

But who is responsible for this recent payout? Iron Mountain allegedly reported its pricing issues to the GSA before any official compliant was made. However, it was two former Iron Mountain employees, Brent Stanley and Patrick McKillop, who brought this case to light. These two will be splitting $8 million of the total payment – granted to them by the whistleblower provision of the False Claims Act, allowing them to file this suit on behalf of the government for false claims.

The issue can be found in the record storage contracts Iron Mountain held from 2001 to 2014, in which they had failed to comply with price reduction requirements by not extending discounted prices to government customers. Additionally, this case also settled an allegation that Iron Mountain was charging its customers for storage that meets the requirements of the National Archives and Records Administration, when in reality these standards were not being met.

Despite the hefty payout, Ernest Cloutier, the companies Executive VP of U.S. Federal, Security, and Legal, has gone on record stating that they, “…are pleased to have reached this resolution and put the matter behind us,” and that they, “…look forward to continuing to support our Federal government customers”.

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