Two commercial paper-shredding companies have agreed to pay the federal government a combined $1.1 million settlement in a qui tam suit alleging they didn't shred official documents to the size specified by the General Services Administration. A third company hasn't settled.

Shred-it, which operates in Pennsylvania, will pay $300,000, and Iron Mountain, which is located in Massachusetts, will pay $800,000, to the federal government, according to the settlement agreements. Cintas, based in Ohio, is still contesting the suit.