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…

C-12 Contract Shareholder Lawsuit

A lawsuit filed on behalf of investors who purchased L-3 Communications stock between April 25, 2013 and July 30, 2014 alleged the company violated federal securities laws with regard to its work on the U.S. Army’s C-12 aircraft program. The plaintiffs alleged that L-3 made false and/or misleading statements about and/or failed to disclose certain problems on its contract to service the C-12. The value of L-3’s stock dropped more than 12 percent on July 31, 2014 after the company announced it would restate financial results due to “misconduct and accounting errors” on the contract, including cost overruns and net sales overstatements. In February 2017, L-3 settled the lawsuit for $34.5 million without admitting any fault or liability.

Misconduct Type
Enforcement Agency
Contracting Party
Defense - Army
Court Type
Date of Complaint
Contractors Involved Penalty
L-3 Communications $34,500,000
Further Information Released
Settlement Agreement 2/22/2017
Complaint 8/1/2014

Federal Contractor Misconduct Database