Iron Mountain and Shred-It Pay $1.1 Million to Resolve False Claims Act Suit Over Failure to Properly Shred Sensitive Government Documents
Qui Tam Whistleblower Will Receive 15% to 25% of the Government's Recovery
Seattle Whistleblower and False Claims Act Attorneys report that on July 9, 2013, the Department of Justice announced a settlement agreement, resulting from a False Claims Act whistleblower lawsuit, between the United States and two of the country’s largest commercial shredding services companies. Shred-It Incorporated and Iron Mountain, Incorporated were named in this False Claims Act qui tam whistleblower lawsuit that alleged that Shred-It and Iron Mountain contracted with the government to provide shredding services but failed to cut the government’s documents to the size required under the General Services Administration’s standards. Accordingly, their claims for payment for these services were false.
United States Attorney Zane David Memeger announced that Iron Mountain will pay $800,000 to the government, plus attorneys’ fees; Shred-It will pay $300,000 to the government, plus attorneys’ fees.
The case was originally filed under the False Claims Act by qui tam whistleblower, Douglas Knisely, who operates a paper shredding business in Lock Haven, Pennsylvania. The False Claims Act permits ordinary citizens (known as “relators”) to bring lawsuits in the name of the United States alleging fraud against the government. In this case, the qui tam relator is entitled to a portion of the settlement that ranges between 15% and 25%.
Shred-It and Iron Mountain are two of the largest companies in the United States that provide commercial shredding services to the government. The claims in the complaint are allegations only; there has been no determination of liability.
Source: Dept. of Justice
United States Attorney Zane David Memeger announced that Iron Mountain will pay $800,000 to the government, plus attorneys’ fees; Shred-It will pay $300,000 to the government, plus attorneys’ fees.
The case was originally filed under the False Claims Act by qui tam whistleblower, Douglas Knisely, who operates a paper shredding business in Lock Haven, Pennsylvania. The False Claims Act permits ordinary citizens (known as “relators”) to bring lawsuits in the name of the United States alleging fraud against the government. In this case, the qui tam relator is entitled to a portion of the settlement that ranges between 15% and 25%.
Shred-It and Iron Mountain are two of the largest companies in the United States that provide commercial shredding services to the government. The claims in the complaint are allegations only; there has been no determination of liability.
Source: Dept. of Justice