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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…

McCoy/Wachtel/Scharfman ERISA Lawsuits

Three separate lawsuits were filed in New Jersey federal court by beneficiaries in POS plans administered by Health Net. The lawsuits claimed Health Net violated the Employee Retirement Income Security Act (“ERISA”) by systematically under-reimbursing out-of-network service providers, requiring beneficiaries to pay unreasonably high out-of-pocket costs. In November 2007, it was reported that Health Net settled the three lawsuits. In July 2008, the court gave final approval to the settlement. Under the agreement, Health Net did not admit liability and will pay $215 million and make $40 million worth of improvements in its business practices.

Misconduct Type
Health
Enforcement Agency
Non-Governmental
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Settlement Announcement
11/1/2007
Contractors Involved Penalty
Total
Health Net, Inc. $255,000,000
Further Information Released
Law Firm Press Release 8/15/2008
Settlement 8/15/2008
Complaint 11/7/2007
SEC 10-K (pp. 39-41 of 163) 11/7/2007

Federal Contractor Misconduct Database