This website provides general information on the proposed Settlement of the following consolidated class action lawsuits:

• Gruer v. Merck-Medco Managed Care, L.L.C., No. 97 Civ. 9167 (CLB);

• Green v. Merck-Medco Managed Care, L.L.C., No. 98 Civ. 0847 (CLB);

• Bellow v. Merck-Medco Managed Care, L.L.C., No. 98 Civ. 4763 (CLB);

• Janazzo v. Merck-Medco Managed Care, L.L.C., No. 99 Civ. 4067 (CLB); and

• O’Hare v. Merck-Medco Managed Care, L.L.C., No. 01 Civ. 3805 (CLB).  ("The Actions")

The Actions were brought against Medco Health Solutions, Inc. and Merck & Co., Inc., and asserted claims for breach of fiduciary duty and other violations under the Employee Retirement Income Security Act of 1974 (“ERISA”).  The lawsuits are pending in the United States District Court for the Southern District of New York. The Court preliminarily approved the Settlement on July 31, 2003. 

The Defendants deny any wrongdoing or liability and believe they have good defenses to the claims.  Nonetheless, they have agreed to enter into a settlement in order to avoid the further expense, inconvenience and burden of the litigation.

The Settlement Class consists of all employee welfare benefit plans that have or have had contracts with Medco Health Solutions, Inc. (“Medco”), whether directly or indirectly (including through third party administrators, HMOs, insurance companies, Blue Cross Blue Shield entities or other intermediaries (collectively, “TPAs”)), where the contracts with Medco were both (a) in force at any time between December 17, 1994, and the date of the final approval of the Settlement, and (b) subject to ERISA.

Essentially, the Class consists of ERISA plans for which Medco (and/or its predecessors and subsidiaries) administered a pharmacy benefit, either directly or through a TPA, during the period December 17, 1994 to today.  Medco's predecessors include Merck-Medco Managed Care and Medco Containment Services.  Its principal subsidiaries for this purpose include PAID Prescriptions, Systemed, ProVantage, and its Merck-Medco Rx Services and National Rx Services (NRx) home delivery/mail service pharmacies.