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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 ERISA Class Action Settlement
Date: 12/09/2002 (Date of Settlement)
Misconduct Type: Health
Enforcement Agency: Non-Governmental
Contracting Party: None
Court Type: Civil
Synopsis: Merck agreed to pay $42.5 million to settle class-action lawsuits against its pharmacy benefits management subsidiary, Medco Health Solutions (formerly Merck-Medco Managed Care, LLC -- Merck and Medco officially split in August 2003). Medco, which negotiates with drug companies to obtain discounts for employers and health plans, was accused of improperly pocketing billions in rebates and other fees and, by doing so, violating its fiduciary duties to customers under the federal Employee Retirement Income Security Act (ERISA).