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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
Merck & Co., Inc.
Medco False Claims Act Litigation
Date: 10/23/2006 (Date of Settlement)
Misconduct Type: Cost/Labor Mischarge
Enforcement Agency: Multiple Agencies
Contracting Party: None
Court Type: Civil
Synopsis: Two consolidated qui tam lawsuits filed under the False Claims Act charged Merck's pharmacy benefits management unit Medco Health Solutions (formerly Merck-Medco Managed Care, LLC -- Merck and Medco officially split in August 2003) with cheating federal employees' health plans through various fraudulent practices involving the processing of mail order prescriptions. Medco settled with the government, agreeing to pay $137.5 million plus interest.