SOURCE: Rural/Metro Corporation

Rural/Metro Corporation

November 05, 2013 07:34 ET

Rural/Metro Resolves Qui Tam Suit Related to Companies Acquired in 2011

$8 Million Settlement Amount Held in Pre-Established Escrow Account

SCOTTSDALE, AZ--(Marketwired - Nov 5, 2013) - Rural/Metro Corporation (the "Company") announced today that it filed a motion with the bankruptcy court seeking approval of a voluntary civil settlement agreement it reached in principle with the U.S. Attorney's Office of the Southern District of California that would result in the dismissal of a qui tam civil suit filed in 2009 against the Pacific Ambulance, Inc. ("Pacific") and Bowers Companies, Inc. ("Bowers"), which Rural/Metro purchased in September 2011. All of the alleged misconduct being investigated by the U.S. Attorney's Office in connection with the qui tam suit occurred prior to Rural/Metro's acquisition of Pacific and Bowers, and the settlement ensures Rural/Metro will be released from all legacy liabilities it acquired related to the underlying investigation. The qui tam suit is based upon allegations regarding the submission of false claims to the government by engaging in alleged improper swapping arrangements with skilled nursing facilities. Rural/Metro cooperated fully with the review of these matters and is pleased to have reached a resolution, pending the approval of the bankruptcy court.

The settlement with the U.S. Attorney's Office does not include any additional integrity provisions to the Corporate Integrity Agreement ("CIA"), under which Rural/Metro has been operating for the past year.

Under the settlement agreement, Rural/Metro will pay the government $8 million plus interest, funded entirely by funds that have been held in escrow since the acquisition of Pacific and Bowers in September 2011. The escrow account has sufficient funds to satisfy the terms of the agreement; accordingly, the settlement will have no impact on the Company's balance sheet and financial flexibility.

Rural/Metro is pleased to resolve the legacy liabilities it acquired in connection with its purchase of Pacific and Bowers, and is committed to ensuring that it remains in strict compliance with all applicable laws, regulations and standards in each of the markets and jurisdictions in which it operates.

About Rural/Metro

Rural/Metro Corporation is a leading national provider of 911-emergency and non-emergency interfacility ambulance services and private fire protection services, operating in 21 states and nearly 700 communities. For more information, visit the Company's website at

Contact Information

  • Contact

    Jennifer Holsman Tetreault
    Rural/Metro Corporation

    Andrew Siegel / Dan Moore
    Joele Frank
    Wilkinson Brimmer Katcher