RPM International reaches deal to settle US DOJ pricing probe

28 August 2013 16:50  [Source: ICIS news]

HOUSTON (ICIS)--RPM International has reached an agreement with the US Department of Justice (DOJ) to settle a probe into irregularities over pricing in government contracts held by RPM’s roofing business, the US-based coatings and sealants firm said on Wednesday.

Under the settlement, RPM expects to pay $65.1m (€48.8m) to resolve the issue. The company had already taken a $68.8m accrual to account for the matter.

The DOJ was investigating RPM government roofing contracts with the US General Services Administration (GSA). The probe involved compliance with pricing terms and conditions of the GSA contracts for sales of product and services from 2002 to 2008.

RPM said that settlement with the DOJ involved a “recognition that accurate information about commercial pricing and discounting practices was not always provided on a timely basis to the GSA.”

RPM CEO Frank Sullivan added: “Though our roofing division made mistakes in the administration of our GSA contracts, it has always delivered excellent roofing and weatherproofing solutions to its federal customers.”

“We are fully committed to conducting business with the highest levels of compliance, and have taken a number of proactive actions to strengthen our administrative procedures and compliance systems to prevent future errors from occurring," Sullivan added.

($1 = €0.75)

By: Stefan Baumgarten
+1 713 525 2653

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