The Department of Justice has announced that Iron Mountain Incorporated and Iron Mountain Information Management LLC, of Boston, Massachusetts, 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 contracts.
The settlement involves contracts where Iron Mountain provided record storage services from 2001 to 2014 through GSA’s Multiple Award Schedule program. Iron Mountain allegedly 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. The settlement also resolves an allegation that Iron Mountain charged the government 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 FCA. The lawsuit was filed by a former Iron Mountain employee and a former records management industry worker, who collectively will receive $8,010,000.
For more information, see the DOJ release.