Securities class action filed on behalf of a class of persons and entities who purchased or otherwise acquired Merck & Co. Inc. (“Merck” or the “Company”) securities between May 21, 1999 and October 29, 2004, inclusive (the “Class Period”) arising out of the Company’s materially false and misleading statements concerning VIOXX, which was withdrawn from the market in the Fall of 2004.
On September 9, 2008, the United States Court of Appeals for the Third Circuit reversed the District Court’s dismissal of this action on statute of limitations grounds. BLB&G argued the appeal on behalf of the Plaintiffs and the Class, including Co-Lead Plaintiff and BLB&G client The Public Employees’ Retirement System of Mississippi, which intervened in the action on January 25, 2007. Please see the "Case Documents" page for the Third Circuit's decision.
On January 15, 2009, in an effort to appeal the Third Circuit’s decision, the Defendants filed a petition for a writ of certiorari with the United States Supreme Court. While Defendants’ petition was pending before the Supreme Court, Co-Lead Plaintiffs continued their prosecution of the action and, on March 10, 2009, filed with the U.S. District Court for the District of New Jersey a Consolidated Fifth Amended Class Action Complaint. On March 23, 2009, Co-Lead Plaintiffs opposed the Defendants’ petition for a writ of certiorari, and on May 26, 2009, it was announced that the Supreme Court had granted Defendants’ petition. On October 19, 2009, Plaintiffs filed their Supreme Court brief in opposition to Merck's appeal and oral argument was held before the Supreme Court on November 30, 2009.
On April 27, 2010, the Supreme Court issued a unanimous decision in favor of the Plaintiffs, ruling that Merck investors can move forward with their class action. The Supreme Court's decision is a ground-breaking victory for investors that clarifies the standard governing statute of limitations in securities fraud suits. The decision is available on the "Case Documents" page.
On June 18, 2010, Defendants moved to dismiss the Complaint on grounds other than statute of limitations. Plaintiffs filed their opposition to Defendants’ motions to dismiss on August 6, 2010, and Plaintiffs’ investigation into the Defendants’ misconduct is ongoing.
Background
In 2004, as the truth concerning VIOXX’s cardiovascular risks, the diminished commercial viability of the purported “blockbuster” drug, and Defendants' knowledge of problems with VIOXX became known, the trading price of Merck securities dropped sharply. This significantly harmed investors who had purchased Merck securities during the Class Period. For example, between the worldwide withdrawal of VIOXX on September 30, 2004, and the public confirmation of Defendants’ long-held concerns about the life-threatening risks posed by VIOXX on November 1, 2004, Merck’s market capitalization fell by tens of billions of dollars.
