A qui tam action that was settled back on August 28, 2013, has recently been made publicly accessible. The action involved allegations that Tremco, Inc., a roofing and building maintenance company, engaged in fraudulent and dishonest business practices from January 2002 to March 2011. The allegations came from Gregory Rudolph, Tremco’s former vice president. Under the False Claims Act, Rudolph, as a whistleblower and private citizen, was entitled to a share of whatever recovery might be had. That share ended up being $10.9 million out of the $60.9 that Tremco finally agreed to pay.
Tremco’s Bad Business Practices
Specifically, Tremco allegedly failed to provide government entities with the same discounts that it was giving its commercial customers, used words like “premium” to describe products that were actually generic, and knowingly sold faulty products, including an adhesive formula used in its roofing systems. The United States Department of Justice further alleged that Tremco violated its contract with the General Services Administration (GSA) by not making complete and accurate information about its sales tactics and pricing changes available. Tremco had agreed to do so in return for the ability to sell to hundreds of federal government customers under one contract.
However, Tremco did not deal exclusively with government customers. Many of its customers in the private-sector were also apparently tricked into purchasing high-end, state-of-the-art roofing systems when all that was actually needed were the much cheaper options that would have produced identical results. Tremco also faced claims alleging it knew the BURmastic composite ply used in most of its roofing systems was defective as early as 2005, even though the company provided a guarantee in its BURmastic product manual that the ply was free of defects. The ply, too, was used on both government and private-sector projects, widening the negative impact of Tremco’s actions.
The settlement with the federal government, however, did not resolve the state actions, and a class action lawsuit is possible in the future. If you believe you were a victim of bad faith business practices by Tremco, you may be eligible to recover damages. Call Attorney Group today for a free case evaluation. We can answer your questions, inform you of your legal options, and get you started on the path to receiving the compensation to which you may be entitled.