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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 Stock Purchase Agreement
Date: 10/23/2003 (Date of Settlement)
Misconduct Type: Securities
Enforcement Agency: Non-Governmental
Contracting Party: None
Court Type: Civil
Amount: $137,000,000
Disposition: Settlement
Synopsis: In October 2003, Health Net and subsidiary Foundation Health Corporation entered into a settlement agreement with Superior National Insurance Group to settle claims that "FHC made certain misrepresentations and/or omissions in connection with the sale of Business Insurance Group (BIG) and breached the stock purchase agreement governing the sale." As part of the settlement agreement, Health Net agreed to pay the plaintiff $132 million.
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