Merck & Co. Inc. Case 04/03/2008

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Company Name(s): 
Merck & Co.
Case Name: 
Merck & Co. Inc. Case 04/03/2008
Case Status: 
Lawsuit Filed
Case Status: 
Judgment Issued
Case Status: 
Settlement Proposed
Affected Securities
NYSE: MRK
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
04/03/2008
Class Period Begin: 
10/22/2007
Class Period End: 
03/28/2008
Court of Filing: 
United States District Court Eastern District of Pennsylvania
Settlement Amount: 
$688,000,000
Summary: 

February 14, 2013 - Settlement proposed. The pharmaceutical company will pay $215 million to settle a Schering-Plough class action and $473 million to settle a Merck class action instituted by investors in New Jersey federal court.

September 2, 2009 - Motion to dismiss denied.

December 12, 2008 - Defendant filed a motion to dismiss.

October 6, 2008 - Amended complaint filed.

July 3, 2008 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

June 3, 2008 - Lead plaintiff motions were filed.

May 8, 2008 - According to a press release, the class action lawsuit filed in the United States District Court, Eastern District of Pennsylvania, 08cv1603, has been withdrawn without prejudice since defendants had not appeared, answered or moved for summary judgment. The action will be refiled in the United States District Court for the District of New Jersey, Civil Action No. 08-02177.
The first complaint filed charges Merck and its Chairman, President and Chief Executive Officer with violations of the Federal Securities Laws. The Complaint alleges that defendants deceived the investing public regarding the results of the ENHANCE trial because the results were not positive or beneficial to Merck and to the contrary would be detrimental. The trial results when fully explained and disclosed on March 28, 2008 showed that there was no statistically significant difference between patient use of VYTORIN versus patients treated with SIMVASTATIN. Based on trial results, defendants were aware that the medical community would turn to an alternative, less expensive statins, thus seriously impacting the Company’s earning. Moreover, the Company’s earnings were dependent on increasing sales of VYTORIN as its patent and exclusivity on ZOCOR had expired and the company’s performance would and could be negatively impacted by competition from cholesterol management products on the market. These disclosures caused Merck’s stock price to fall from $44.51 on March 28, 2008 to close on March 31, 2008 at $37.95.