FRANKLIN LAKES, N.J., Sept. 23 /PRNewswire-FirstCall/ -- Medco Health Solutions, Inc. today announced that a U.S. District Court judge in Philadelphia has dismissed one of the counts of a lawsuit brought against the company by the federal government. In his ruling, Judge Clarence C. Newcomer dismissed the government’s count alleging active and constructive fraud.
“Medco is gratified that the court has dismissed one count of the government’s complaint and recognizes the ‘thinness’ of a number of the allegations,” said David Machlowitz, general counsel, Medco. “Today’s ruling represents positive progress in Medco’s vigorous defense.”
Machlowitz observed that discovery between the parties on the facts in the case is set to close on October 29 and Medco later intends to file a motion for summary judgment to dismiss the surviving four counts.
Under court rules, a motion to dismiss requires the court to assume the facts alleged in the complaint are true -- a high legal threshold, which makes successful motions to dismiss rare. A motion for summary judgment uses a different legal standard and the facts alleged in the complaint are open to challenge. Both represent steps that would precede a possible trial, if the case is not otherwise dismissed or resolved.
In April, Medco entered into an agreement with the federal government that resolved all non-monetary issues associated with this complaint. In that agreement, there was no admission or finding of inappropriate business conduct by Medco.
“We are confident in the overall excellence of our pharmacy operations and the integrity of our business practices,” said Machlowitz.
About Medco
Medco Health Solutions, Inc., a leading pharmacy benefit manager with the nation’s largest mail order pharmacy operations, assists its customers to moderate the cost and enhance the quality of prescription drug benefits provided to members nationwide. Its customers include private- and public- sector employers and healthcare organizations. Medco is traded on the New York Stock Exchange under the symbol MHS. On the Net: http://www.medco.com/.
This press release contains “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that may cause results to differ materially from those set forth in the statements. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. We undertake no obligation to publicly update any forward- looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this presentation should be evaluated together with the risks and uncertainties that affect our business, particularly those mentioned in the Risk Factors section of the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.
Medco Health Solutions, Inc.
CONTACT: Media: Jeffrey Simek, +1-201-269-6400, jeffrey_simek@medco.com,or Investors: Susan Cramer, +1-201-269-6187, susan_cramer@medco.com, both ofMedco
Web site: http://www.medco.com/
