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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 »

Electronic Data Systems

ERISA Litigation

Date: 06/25/2008 (Date of Announcement)

Misconduct Type: Securities

Enforcement Agency: Non-Governmental

Contracting Party: None

Court Type: Civil

Amount: $31,500,000

Disposition: Settlement

Synopsis: Electronic Data Systems reached a tentative settlement in an Employee Retirement Income Security Act (ERISA) class action filed by more than 85,000 employees. The employees, members of EDS’s 401(k) plan, accused the defendants of breaching their fiduciary duties by investing plan assets in EDS stock when it was imprudent to do so. The plaintiffs also alleged the defendants violated federal securities law by selling unregistered shares of EDS stock to the plan. Under the proposed settlement, the defendants denied liability but agreed to pay $12.5 million in cash and provide additional injunctive relief worth no less than $19 million.