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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…

Bear Stearns Derivative Litigation

Michigan Retirement System filed a securities class-action lawsuit against investment bank Bear Stearns and its outside auditor, Deloitte & Touche, alleging Bear Stearns’ executives made misleading statements regarding the firm’s financial stability in the leadup to the 2008 financial crisis. The plaintiffs claimed that Bear Stearns, aided by Deloitte, inflated its stock price through several misrepresentations in the valuation of its mortgages that eventually hid the losses in the housing market. Several pending class actions related to the March 2008 collapse of Bear Stearns were consolidated into a single case in 2009. In June 2012, a proposed settlement was reached in which Deloitte denied any wrongdoing and agreed to pay $19.9 million.

Misconduct Type
Securities
Enforcement Agency
State/Local
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Complaint
2/27/2009
Contractors Involved Penalty
Total
Deloitte LLP $19,900,000
Further Information Released
Settlement Notice 6/27/2012
Complaint 2/27/2009

Federal Contractor Misconduct Database