Robbins LLP: RPM International, Inc. (RPM) Misled Shareholders According to a Recently Filed Lawsuit
Robbins LLP announces that a disclosure and accounting fraud complaint was filed against RPM International, Inc. (NYSE: RPM) in the U.S. District Court for the District of Columbia. The complaint is brought against RPM and RPM’s General Counsel and Chief Compliance Officer Edward W. Moore (“Moore”) for alleged violations of the Securities Exchange Act of 1934 and the Securities Act of 1933, among other securities laws. RPM manufactures, markets, and sells specialty chemical products for industrial, specialty, and consumer markets worldwide.
RPM Accused of Failing to Disclose Loss Contingency
According to the complaint, RPM failed to timely disclose a loss contingency, or record an accrual for, an investigation by the U.S. Department of Justice (“DOJ”) on its books. The DOJ investigation began in 2011 and concerned whether RPM’s subsidiary, Tremco, Inc., overcharged the federal government on certain government contracts. Moore made material misrepresentations to RPM officials and independent auditors about the DOJ investigation in connection with the auditors’ reviews of RPM’s filings with the U.S. Securities and Exchange Commission (“SEC”). As a result, from October 2012 through December 2013, RPM submitted multiple inaccurate filings to the SEC. In August 2014, RPM restated its financial results for the three quarters that occurred during the DOJ investigation and admitted that it made “errors” relating to the “timing of disclosure and accrual” for the DOJ investigation and that the company had a material weakness in its internal control over financial reporting and its disclosure controls.
RPM Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.