HEALTH CARE
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Suits Filed to Block Medco-Merck Merger: The two class-action lawsuits filed against Medco Containment Services Inc. and Merck & Co. accuse the companies of violating their fiduciary duties in pursuing the $6-billion merger, announced July 28. A spokesman for Medco, the nation’s largest provider of prescription drugs by mail, said the suits are without merit and will have no effect on Medco’s ability to consummate the merger with Merck, a giant pharmaceuticals maker. The suits, filed on behalf of Medco shareholders in the Court of Chancery of the state of Delaware, allege that the companies failed to explore other possible business alliances, made inadequate disclosures, paid improper fees to certain executives and structured the merger unfairly.
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