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About POGO's Federal Contractor Misconduct Database (FCMD)
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 »
Health Net, Inc.
Breach of Fiduciary Duty, Fraud, Unfair or Deceptive Acts or Practices and Conspiracy
Date: 11/04/2005 (Date of Last Damages Award)
Misconduct Type: Other
Enforcement Agency: Non-Governmental
Contracting Party: Non-Governmental
Court Type: Civil
Amount: $108,700,000
Disposition: Judgment Against Defendant
Synopsis: Receivers overseeing the liquidation of health plans in Louisiana, Texas and Oklahoma that were previously owned by former Health Net subsidiary Foundation Health Corporation (FHC) filed suit against Health Net and various officers and directors of AmCareco, Inc., the company to which FHC sold its interest in the plans in 1999. The plaintiffs sued Health Net for breach of fiduciary duty, fraud, unfair or deceptive acts or practices, and conspiracy in regard to the sale of the health plans. The receivers' claims were consoldiated and simultaneously tried in Louisiana. On August 2, 2005, the court entered judgment on the jury's verdict as to the receiver for the Texas plan and awarded damages that were eventually reduced to $36.7 million in compensatory and $45.5 million in punitive damages. On November 4, 2005, the court entered judgment as to the Oklahoma and Louisiana receivers, awarding damages totaling $26.5 million
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