December 1999 / January 2000

Merck-Medco managed case v Rite Aid Corp

01 December 2000

The United States Court of Appeal for the Fourth Circuit granted a summary judgment in favour of the appellees in an antitrust suit brought by Merck- Medco Managed Care. Merck-Medco had brought the suit under Section 1 of the Sherman Act, alleging that a number of pharmacies in Maryland, led by Rite Aid, had collectively refused to participate in a network of pharmacies that Merck-Medco was setting up as part of a plan to provide pharmacy benefits to state employees. The court found, however, that the defendants had not engaged in anything which was inconsistent with normal business practice, and that none of the pharmacies had refused to negotiate with Merck- Medco.