Skip Navigation
 
   

NAID board initiates investigation

Bookmark and Share

July 12, 2013

As widely reported, Iron Mountain and Shred-it separately entered into settlements with the U.S. government totaling $1.1 million July 9, stemming from allegations of contractual non-compliance by a competitor. Both Iron Mountain and Shred-it deny the allegations, point out the government never intervened in the matter, and each state they resolved the matter to avoid litigation. Notwithstanding, the NAID Board of Directors has instructed the association’s Complaint Resolution Council to immediately initiate investigation(s) of the facts to determine the existence of any NAID Code of Ethics violations. Cintas, who is also named in the related lawsuit, continues to dispute the charges. The Complaint Resolution Council cannot investigate ongoing legal actions; therefore, Cintas will not be included in these investigations. Pending the outcome of that legal action, the Complaint Resolution Council will evaluate the need for any investigation at such time.

“It is understandable that the board would be concerned about these allegations,” said NAID CEO Bob Johnson. “A formal investigation is an appropriate course of action in this situation.”