MetLife Accused of Wrongly Pocketing $65 Million in Drug Rebates

Two former MetLife Group Inc. employees filed a proposed class action accusing the company of wrongly keeping about $65 million in drug rebates that should have gone to its employee health plan.

Rebates generated under MetLife’s pharmacy benefit manager contract with Express Scripts are an asset of the company’s health plan under the Employee Retirement Income Security Act, the employees alleged.

Those rebates, which totaled more than $65 million between 2016 and 2021, should have been used for the benefit of plan participants, but were instead diverted to MetLife’s coffers in violation of ERISA, the employees claim.

MetLife’s practice of ...