Medco ERISA Class Action Settlement
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).
- Misconduct Type
- Enforcement Agency
- Contracting Party
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- Date of Settlement
|Merck & Co., Inc.||$42,500,000|