RPM Agrees To Settle SEC Accounting And Disclosure Violations Claims : Report

(RTTNews) - RPM International Inc. (RPM) and its general counsel and chief compliance officer, Edward Moore, agreed to pay more than $2 million penalty to settle the U.S. Securities and Exchange Commission's charges that they violated accounting and disclosure rules, the Wall Street Journal quoted the SEC as saying.

From 2011 to 2013, the U.S. Department of Justice had investigated whether the company had overcharged the government on some of its contracts, the Journal reported.

The SEC reportedly said that 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. However, RPM didn't record the accruals on its books or disclose the Justice Department investigation until the third quarter.

RPM is required to pay $2 million within 30 days of the judgment and Moore is required to pay $22,500, the Journal reported citing a final judgment delivered by the U.S. District Court for the District of Columbia.