MedcoHealth Solutions Inc. (MHS) discloses in Form 8-K that it has received a subpoena from the US Securities and Exchange Commission requesting documents relating to ongoing investigation of California Public Pension Funds (CalPERS).
From 8K: As was previously disclosed, the California AG requested information from Medco about a former consultant engaged by the company in 2004. Since the filing of the 10-K Disclosure, the co. received a subpoena from the SEC’s Los Angeles Regional Office staff requesting the production of documents relating to an ongoing investigation of the California Public Pension Funds. This subpoena requests documents pertaining to Alfred Villalobos, who formerly was a board member of the California Public Employees’ Retirement System (CalPERS), and others. Medco intends to provide documents and to cooperate with the SEC and to continue to voluntarily cooperate with the California AG.
In early March 2011, CalPERS released a report concerning its own investigation of its relationship with various consultants and other entities, which included discussion of Medco’s relationship with the Consultant. Since becoming aware of the investigations and CalPERS’ release of its internal report, the co.’s Board of Directors has been monitoring the investigations. The directors have retained external corporate governance counsel to advise them. The directors and the audit committee continue to receive regular updates on these matters. The directors have determined not to conduct an internal investigation at this time and will continue to monitor developments in these matters.
MHS fell $1.50, or 2.74%, to $53.18 in extended trading.