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…

Sanchez v. Centene Corp. (Health Net Acquisition Class Action)

Centene Corp. paid $7.5 million to settle a putative class action alleging it lied to investors about the financial well-being of Health Net before acquiring the company in a $6.8 billion merger in 2016. Centene claimed the merger would expand its services into new markets and add to its business. But after the deal was closed, Centene disclosed that it had incurred $390 million in liabilities, more than what the company had previously reported. The plaintiffs claimed Centene hid from them that Health Net had experienced dramatic increases in claims for substance abuse care in California in 2014 and 2015, causing its liabilities to rise and its profitability to fall.

Misconduct Type
Enforcement Agency
Contracting Party
Court Type
Date of Settlement Announcement
Contractors Involved Penalty
Centene Corporation $7,500,000
Further Information Released
Settlement Pleading 3/12/2020

Federal Contractor Misconduct Database