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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…

In re Cardinal Health, Inc. Securities Litigation (Securities Fraud)

Plaintiffs, investors in Cardinal Health, Inc., filed a securities fraud action against Cardinal Health, its individual executives and Cardinal’s independent auditor, accounting firm Ernst & Young, alleging that from 1998 through 2002 the company, aided by Ernst & Young, engaged in a scheme to artificially inflate its earnings and conceal its debt. In October 2007, the court approved a settlement establishing a $600 million fund to be distributed to investors who purchased Cardinal Health stock between October 2000 and July 2004.

Misconduct Type
Securities
Enforcement Agency
Non-Governmental
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Filing
4/22/2005
Contractors Involved Penalty
Total
Cardinal Health, Inc. $600,000,000
Further Information Released
Law Firm Press Release 2/27/2008
Settlement 2/27/2008
Opinion and Order 4/14/2007

Federal Contractor Misconduct Database