Federal Contractor Misconduct Database (FCMD)
Violation of Pennsylvania Nonprofit Law
Herman Wooden and Thomas Logan, members of a committee that advised Highmark’s board for 15 years, allege that Highmark, a nonprofit corporation, is violating Pennsylvania law by accumulating excessive profits. According to the lawsuit, Highmark is required to use any profit above an “incidental” amount for the benefit of its customers. The lawsuit claims that a similar nonprofit insurer capped its profit margin at two percent of revenue, and if Highmark had similarly capped its 2010 profit it should have refunded approximately $126 million to its customers.
- Misconduct Type
- Enforcement Agency
- Contracting Party
- Court Type
- Date of Consol. Amd. Complaint