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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…

Breach of Fiduciary Duty, Fraud, Unfair or Deceptive Acts or Practices and Conspiracy

Receivers overseeing the liquidation of health plans in Louisiana, Texas and Oklahoma that were previously owned by former Health Net subsidiary Foundation Health Corporation (FHC) filed suit against Health Net and various officers and directors of AmCareco, Inc., the company to which FHC sold its interest in the plans in 1999. The plaintiffs sued Health Net for breach of fiduciary duty, fraud, unfair or deceptive acts or practices, and conspiracy in regard to the sale of the health plans. The receivers’ claims were consoldiated and simultaneously tried in Louisiana. On August 2, 2005, the court entered judgment on the jury’s verdict as to the receiver for the Texas plan and awarded damages that were eventually reduced to $36.7 million in compensatory and $45.5 million in punitive damages. On November 4, 2005, the court entered judgment as to the Oklahoma and Louisiana receivers, awarding damages totaling $26.5 million

Misconduct Type
Consumer Affairs
Enforcement Agency
Non-Governmental
Contracting Party
Non-Governmental
Court Type
Civil
Disposition
Judgment Against Defendant
Date of Last Damages Award
11/4/2005
Contractors Involved Penalty
Total
Health Net, Inc. $108,700,000
Further Information Released
SEC 10-K (pp. 39-41 of 160) 10/6/2006

Federal Contractor Misconduct Database