RPM International Inc. and its general counsel and chief compliance officer, Edward Moore, have agreed to pay more than $2 million to settle the U.S. Securities and Exchange Commission’s claims they violated accounting and disclosure rules.
RPM, a specialty coatings, sealants and building materials manufacturer, was under a Justice Department investigation from 2011 to 2013 that looked into whether the company had overcharged the government on some of its contracts, according to the SEC.
RPM estimated it had overcharged the government by material amounts in certain contracts in the first and second quarters of fiscal 2013 and it intended to reach a settlement with the Justice Department in the second quarter, the SEC said. However, RPM didn’t record the accruals on its books or disclose the Justice Department investigation until the third quarter, the SEC said.
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