Iron Mountain To Pay $44.5 Mln To Settle GSA Pricing Issues

(RTTNews) - Iron Mountain Inc. (IRM) said Friday that it has reached a settlement agreement with the U.S. Department of Justice to resolve a civil complaint regarding pricing issues associated with Records Management, Data Management and Secure Shredding services that the company provided under U.S. General Services Administration Multiple Award Schedule contracts.

Under the agreement, Iron Mountain will pay $44.5 million to resolve all GSA pricing issues.

"We worked collaboratively with both the GSA and Department of Justice during the course of their investigation of the GSA-pricing issues, fully cooperating with them at every stage," said Ernest Cloutier, Iron Mountain Executive Vice President of U.S. Federal, Security and Legal. "We are pleased to have reached this resolution and put the matter behind us, and we look forward to continuing to support our Federal government customers."

Iron Mountain said there will be no material impact to its statement of operations in the fourth quarter of 2014 due to the settlement, as it has maintained a deferred revenue liability based on an estimate of the GSA pricing adjustment.

The company also said it simultaneously agreed to small settlements with certain State of California entities.