The California Public Employees’ Retirement System has decided not to renew its contract with Medco Health Solutions to manage the pharmacy benefits of its members, according to a statement by Medco issued on Wednesday. The new contract would have started next January.

The decision came after accusations that Medco won the original contract in 2006 by paying $4 million in so-called consulting fees to a former member of the retirement system’s board. Earlier this week, the retirement system released the results of an internal investigation into what its board president described as “apparent misconduct.”

You can read more about the situation in an article published on Thursday in The Los Angeles Times. The Wall Street Journal has more reaction from Medco, including the chief executive’s defense of the company, in its Thursday coverage.