RPM International and its general counsel and chief compliance officer have agreed to a $2 million settlement with the Securities and Exchange Commission for accounting and disclosure rules violations relating to a prior Department of Justice investigation.
RPM is a specialty coatings, sealants, and building materials manufacturer. According to the SEC’s complaint, from 2011 through 2013, the company was under investigation by the DOJ concerning whether it overcharged the government on certain contracts. RPM estimated it overcharged the government by material amounts on the contracts at issue in the first and second quarters of fiscal year 2013 and had planned to settle with the DOJ in the second quarter, the SEC said. However, RPM didn’t disclose the investigation, or record any accrual on its books, until the third quarter, according to the SEC.
