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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 Stock Purchase Agreement

In October 2003, Health Net and subsidiary Foundation Health Corporation entered into a settlement agreement with Superior National Insurance Group to settle claims that “FHC made certain misrepresentations and/or omissions in connection with the sale of Business Insurance Group (BIG) and breached the stock purchase agreement governing the sale.” As part of the settlement agreement, Health Net agreed to pay the plaintiff $132 million.

Misconduct Type
Securities
Enforcement Agency
Non-Governmental
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Settlement
10/23/2003
Contractors Involved Penalty
Total
Health Net, Inc. $137,000,000
Further Information Released
Health Net Press Release 10/6/2006
SEC 10-K (p. 41 of 160) 10/6/2006

Federal Contractor Misconduct Database