COURT APPROVES SETTLEMENT FOR ERISA CASE
In re Medco Health Solutions Pharmacy Benefits Management Litig., Case No. 03-MD-1508 (CS) (S.D.N.Y.)
Abbey Spanier is one of two lead counsel in In re Medco Health Solutions Pharmacy Benefits Management Litig., Case No. 03-MD-1508 (CS), currently pending in the United States District Court for the Southern District of New York. Plaintiffs are the trustees and beneficiaries of employee welfare benefit plans that directly or indirectly contracted with Medco Health Solutions which, at the time the case was commenced, was owned by drug manufacturer Merck & Co, Inc. Plaintiffs brought the action alleging that Medco had breached its fiduciary duty under the Employee Retirement Income Security Act of 1974 by failing to act in their best interest in its capacity as a pharmaceutical benefits manager for the plans. Specifically, plaintiffs alleged that Medco managed its formularies and implemented programs in ways that tended to favor Merck products.
The case was litigated through summary judgment motions and a settlement that provides for a cash settlement fund in the amount of $42.5 million and significant changes in practice at Medco. The settlement has been approved by the Court and counsel anticipates that the settlement fund will be distributed to those class members that submitted identification forms within the first half of 2010.
For more information, visit: http://completeclaimsolutions.com/erisasettlment/index.htm