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. As alleged in the complaint, Merck securities dropped sharply 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 to the market. This significantly harmed investors who had purchased Merck securities during the Class Period. For example, following 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, Merck's market capitalization fell by tens of billions of dollars.
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, the Defendants filed a petition for a writ of certiorari with the United States Supreme Court in an effort to appeal the Third Circuit's decision. 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 May 26, 2009, the Supreme Court announced that it 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 the statute of limitations in securities fraud suits. The decision is also available on the "Case Documents" page.
In June of 2010, Defendants moved to dismiss the Complaint on grounds other than the statute of limitations. Briefing was complete on June 28, 2011, and on August 8, 2011, the District Court issued its order sustaining the Plaintiffs' claims in all material respects. Specifically, the Court held that the Plaintiffs had adequately alleged that Merck made false and misleading statements of material fact throughout the Class Period concerning the safety of VIOXX while failing to disclose data illustrating its potentially dangerous side effects. Moreover, the Court held that the Plaintiffs' allegations of scienter as to the Company and two of its top scientists were sufficient to overcome Defendants' motion. The decision is available on the "Case Documents" page.
Plaintiffs' investigation into the Defendants' misconduct is ongoing, as the case now progresses through the discovery phase.
