Medco , a major prescription benefits manager, released its first quarter earnings today and in doing so it announced an agreement in principle on financial terms to settle the False Claims Act lawsuit pending against it in the U.S. District Court located in Philadelphia. The lawsuit relates to Medco’s FEHB Program business.
Marketwatch.com reports that
“Medco said it’s reached “an agreement in principle on financial terms” with the U.S. Attorney’s office, with final disposition contingent on the parties striking what the company called a “corporate integrity agreement.”
“These additional elements have not been agreed to by the participating entities and there can be no assurance that a mutually satisfactory agreement will be reached,” Medco said, adding that it hasn’t admitted to any wrongdoing under the settlement.”
Medco’s stock price is up 4.61% today on a strong earnings report and the settlement news.