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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

McKesson

McKesson/HBOC, Inc. Securities Litigation

Date: 01/12/2005 (Date of Settlement)

Misconduct Type: Securities

Enforcement Agency: Non-Governmental

Contracting Party: None

Court Type: Civil

Amount: $960,000,000

Disposition: Settlement

Synopsis: In January 2005, McKesson reached an agreement to settle a consolidated securities class action arising out of the discovery in April 1999 of accounting improprieties at HBO & Co., Inc. (HBOC), which McKesson acquired in January 1999. The improprieties turned out to be part of a long-running scheme at HBOC to fraudulently inflate revenue and net income, a scheme for which several former HBOC executives pled guilty. Under the agreement, McKesson agreed to pay the class members a total of $960 million in cash.