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The Litigation Side of Forensic Accounting Copyrighted 2001 D. Larry Crumbley, CPA, Cr.FA, CFD KPMG ... - page 58 / 275

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© D.L. Crumbley

Judge Admonishes Medco

A federal judge admonished Medco Health Solutions, Inc., for violating his order to turn over documents in the company’s legal battle with the Justice Department.

Medico, one of the country’s largest pharmacy-benefit managers, has been “dilatory” in its disclosure of certain documents that were supposed to be turned over and “any further violations of this court’s orders may result in sanctions.”

If a judge or jury agrees with the Justice Department, Medco could technically be liable for an $11,000 fine on each of the millions of prescriptions Medco processed for government employees.

In his order, the judge said Medco has turned over documents on disks that have technical defects, and that the plaintiffs have complained about the defects to Medco. “Medco argues that it has not been made aware of any defects in electronic document production,” the judge wrote. Clearly, this is disingenuous.”

Source: Barbara Martinez, “Judge Admonishes Medco On Case Documents,” WSJ, February 4, 2005, p. A-5.

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