Welcome to the Medco ERISA Settlement Website
(last updated October 15, 2008)

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 Settlement Class consists of all employee welfare benefit plans that have or have had contracts with Medco¹, 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 contemplated by the Settlement Agreement, as amended, and (b) subject to ERISA.

The Actions were brought, in the United States District Court for the Southern District of New York, against Medco Health Solutions, Inc. and Merck-Medco Managed Care, L.L.C. and asserted claims for breach of fiduciary duty and other violations under the Employee Retirement Income Security Act of 1974 (“ERISA”). The Court approved the Settlement on May 25, 2004.

After the settlement was approved by the District Court, certain of the Class Members who had objected to the settlement appealed the approval of the settlement, and other related matters, to a higher court, the United States Court of Appeals for the Second Circuit (the “Second Circuit”). The Second Circuit remanded the case to the District Court for certification of a subclass made up of employee welfare benefit plans that paid for prescription drugs primarily based upon the volume and type of drugs dispensed to plan members (“self-funded plans”). The Second Circuit also remanded the case for reconsideration of the allocation of the settlement proceeds and specific factual findings regarding the plan of allocation of the Settlement Fund as between self-funded and insured plans.

On March 13, 2008, the District Court certified a subclass consisting of all members of the Class that were self-funded plans. Pursuant to the Preliminary Order In Connection With Second Amendment To Settlement Agreement dated April 1, 2008, a Notice of Certification of Subclass, Amendment to Settlement Agreement and Second Settlement Hearing (the “Notice”) was mailed to all Class Members that either (1) submitted identification forms in response to a prior Notice and identified themselves as paying for prescription drugs primarily on an insured or capitated basis; or (2) did not properly identify themselves as either self-funded or insured. On May 20, 2008, the District Court held a hearing to determine whether to approve the amended allocation plan.

If you would like additional information concerning the change to the settlement, you may contact counsel for the self-funded plans or counsel to the insured plans by writing to them at the addresses listed on page 3 of the Notice. This address information is also listed on the “Contact Us” page of this web site.