Tuesday, October 24, 2006
Medco Settlement Finalized
The U.S. Department of Justice announced yesterday that it has finalized an agreement with Medco Health Solutions, among others, to settle the False Claims Act lawsuits pending against Medco in the federal district court in Philadelphia, PA. Under the settlement agreement, which was first announced in May 2006, Medco will pay the Government and the qui tam relators who initially brought the lawsuits over $155 million. Medco also is entering in a corporate compliance agreement, and it has agreed to treat the settlement and related payments as "unallowable costs" for purposes of its government contract business with Medicare, Medicaid, TRICARE, and the FEHB Program. The settlement documents are available here. This settlement brings to a close litigation that raged for several years.