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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Accounting Irregularities (Derivative Litigation)

In August 2007, Dell announced it would restate four years of financial results (fiscal years 2003-2006 and the first fiscal quarter of 2007) after an internal audit found that senior executives sought accounting adjustments “motivated by the objective of attaining financial targets.” According to Dell, “a number of these adjustments were improper,” and “[t]he investigation found that sometimes business unit personnel did not provide complete information to corporate headquarters and, in a number of instances, purposefully incorrect or incomplete information about these activities was provided to internal or external auditors.” In September 2009, Dell settled a stockholders’ derivative lawsuit by agreeing to pay $1.75 million in legal costs and implement various corporate governance changes. The Securities and Exchange Commission is also investigating the matter (see related Dell pending instance, “Accounting Irregularities.”)

Misconduct Type
Securities
Enforcement Agency
Non-Governmental
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of 8-K
9/28/2009
Contractors Involved Penalty
Total
Dell, Inc. $1,750,000
Further Information Released
Dell Aug. 2007 Press Release 10/24/2009
Dell Sept. 2009 Form 8-K 10/24/2009

See also:

Federal Contractor Misconduct Database