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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…

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
Health
Enforcement Agency
Non-Governmental
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Settlement
12/9/2002
Contractors Involved Penalty
Total
Merck & Co., Inc. $42,500,000
Further Information Released
Merck Financial Statement (p. 3 of 4) 9/7/2007
Settlement FAQs 9/7/2007

Federal Contractor Misconduct Database