Former Tremco Employee's Whistleblowing Leads to $61M Settlement of Qui Tam Case

Tremco Incorporated To Pay $61M in False Claims Settlement

Aug 27, 2013, 18:13 ET from McCarthy, Lebit, Crystal & Liffman, Co., L.P.A.

CLEVELAND, Aug. 27, 2013 /PRNewswire/ -- Gregory Rudolph dedicated 20 years of his career to Tremco Roofing, but resigned in 2009 after his concerns about the company's conduct went unaddressed.  Mr. Rudolph, who worked his way from a roofing technician to the Vice President of Product Management/Research & Development, walked away from a high-salary and job security.  Instead, Mr. Rudolph took his concerns to the federal government, filing a complaint under the False Claims Act shortly after his resignation.  Mr. Rudolph sued on behalf of the united states government alleging that Tremco, and its parent company RPM, had made false claims to the United States government by offering less favorable pricing to the government as opposed to pricing afforded to private customers, marketing expensive materials to federal government purchasers without disclosing the availability and opportunity to purchase comparable lower-cost, identical materials, and selling and installing defective products and systems on federal government buildings.

On August 13, 2013, Tremco and RPM International Inc. reached a settlement under which they will pay the government $60,958,963 plus interest for claims arising during the period from January 2, 2002 through March 1, 2011.  As the whistleblower, or relator of the information leading to the settlement, Mr. Rudolph is entitled to a portion of the recovery, which in this case amounts to 17.9% of the settlement.

"Greg's actions reflect tremendous conviction and courage, particularly in difficult economic times," said Ann-Marie Ahern, counsel for Mr. Rudolph.  Rudolph opened a small roofing consulting business, RAW Solutions in Rocky River, Ohio after leaving Tremco.  "The past several years have been very difficult for Greg.  But even with the uncertainty of starting a new business and the stress of the lawsuit, Greg has never regretted his decision." 

Enacted during the Civil War, the False Claims Act, also known as a qui tam action, is a statute that seeks to ensure fair contracting between the government and its suppliers. Anyone with information about false or fraudulent claims against the federal government can act as a relator.  The relator files a lawsuit on the government's behalf, and if after an investigation, the government chooses to intervene, the government may recoup funds that it overpaid as a result of the false or fraudulent conduct of the defendant. 

"Greg's actions led to the government's substantial recovery of taxpayer dollars.  False Claims Act cases provide a unique opportunity for everyday citizens to stop fraud against the government and prevent wasteful spending.  We are very proud of Greg and the result that has been accomplished on behalf of the taxpayers," said Ann-Marie AhernAnn Lugbill of Murphy, Anderson PLLC served as co-counsel on the case, which was filed in Washington, DC, and unsealed on August 26, 2013.

Tremco is a leading supplier of roofing and waterproofing solutions headquartered in Beachwood, Ohio.  RPM International Inc. is a multinational, publicly traded holding company headquartered in Medina, Ohio with operating companies that manufacture high performance improvement products.

Ann-Marie Ahern, a principal at McCarthy, Lebit, Crystal & Liffman, Co., LPA, is a highly regarded employment litigator who represents whistleblowers in False Claims Act cases involving healthcare, GSA fraud, and other unlawful conduct involving the federal government.  Ahern also represents clients in a full range of other employment disputes.  She is supported by the unique platform of a full service law firm.  McCarthy, Lebit, Crystal & Liffman provides sound, insightful, and efficient counsel in a broad spectrum of legal matters encountered by businesses and individuals alike. McCarthy Lebit attorneys are advocates for the unique needs of consumers seeking exceptional legal representation.

Ann Lugbill is with Murphy Anderson LLC.  Ms. Lugbill focuses her practice on representing False Claims Act qui tam whistleblowers and plaintiffs in class action litigation.

SOURCE McCarthy, Lebit, Crystal & Liffman, Co., L.P.A.