Ohio State Teachers Retirement System, Columbus, sued Medco Health Solutions Inc., Franklin Lakes, N.J., the nation's largest pharmacy benefits manager, seeking to recover at least $50 million the system claims Medco overcharged the Ohio system's members. The $42 billion system alleges that Medco, owned by Whitehouse Station, N.J.-based Merck & Co. Inc. until earlier this year, defrauded its members by switching patients' prescriptions without their knowledge and consent, and shipping medicine and billing patients for drugs they never received. Medco handled pharmacy benefits for the system's members from 1998 through December 2001. Ohio Attorney General Jim Petro filed the lawsuit in Ohio state court.
"We believe the allegations lack merit. We stand firm and confident in our resolve to aggressively defend ourselves," David Machlowitz, Medco's general counsel, said in a statement.