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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 Drug Switching Settlement
Date: 04/26/2004 (Date of Settlement)
Misconduct Type: Consumer Affairs
Enforcement Agency: Multiple Agencies
Contracting Party: None
Court Type: Civil
Amount: $29,300,000
Disposition: Settlement
Synopsis: Merck's former pharmacy benefits management subsidiary, Medco Health Solutions, agreed to pay $29.3 million to settle claims filed by the U.S. Justice Department and the attorneys general of 20 states accusing Medco of violating consumer protection and mail fraud laws by switching patients to more expensive drugs, which allowed Medco to pocket billions in incentive rebates from drug manufacturers. Merck and Medco officially split in August 2003
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