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…

ERISA Violations (Grabek Lawsuit)

A class-action lawsuit alleged Northrop Grumman charged unreasonable fees and expenses on employees’ 401(k) plans. The lawsuit alleged Northrop failed to monitor fees and expenses paid by the plans, implement and follow plan procedures, disclose that hidden and excessive fees were being assessed, inform the plan’s participants about the fees, and fire the workers responsible for the fees. The lawsuit also alleged Northrop used the fees and expenses for purposes not allowed by the Employee Retirement Income Security Act (ERISA). In June 2017, it was announced that Northrop agreed to pay $16.75 million to settle claims covering the period between September 2000 and May 2009.

Misconduct Type
Enforcement Agency
Contracting Party
Court Type
Date of Original Complaint
Contractors Involved Penalty
Northrop Grumman $16,750,000
Further Information Released
Settlement Agreement 6/12/2017
Revised Consolidated 2nd Amended Complaint 9/15/2010

Federal Contractor Misconduct Database