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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Drug Switching – New York Settlement

Express Scripts allegedly committed misconduct while managing pharmacy programs.

Express Scripts and CIGNA Life Insurance Company agreed to pay New York State $27 million to resolve claims relating to a drug switching program. The state alleged that Express Scripts, which subcontracted through CIGNA as the pharmacy benefit manager for more than 1 million active and retired New York State employees and their dependents, made misrepresentations regarding the amount of discounts it could obtain, inflated prices for generic drugs, engaged in drug switching programs to get rebates from manufacturers, and diverted those rebates to itself instead of to the state. Express Scripts and CIGNA did not admit any wrongdoing and did not disclose how much of the settlement each paid. In May 2008, Express Scripts settled similar claims with 28 states and the District of Columbia (see ESHC instance, “Drug Switching – National Settlement”).

Misconduct Type
Consumer Affairs
Enforcement Agency
State/Local
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Settlement Announcement
7/29/2008
Contractors Involved Penalty
Total
Express Scripts Holding Company Undisclosed
Further Information Released
Express Scripts Press Release 7/29/2008
NY Attorney General Press Release 7/29/2008

See also:

Federal Contractor Misconduct Database