Background
The action arises from allegations that Merck, one of the world's largest pharmaceutical companies, concealed material information and made false and misleading statements relating to Merck’s multi-billion dollar blockbuster drugs Vytorin and Zetia. In particular, it is alleged that Merck improperly withheld the results of the “ENHANCE” clinical trial, which contradicted Merck’s initial public statements and presentations claiming that the Company expected the trial to “demonstrate [the] additional benefits of Vytorin,” thereby driving “future growth.”
The results of the trial, which Merck partially released on January 14, 2008 in response to public pressure, revealed that not only did the Company's cholesterol drugs show "no statistically significant difference" in plaque buildup, but that the fatty arterial plaques actually grew somewhat faster than in those patients taking a cheaper generic drug. Following this announcement, the House of Representatives' Committee on Energy and Commerce and its Subcommittee on Oversight and Investigations began a probe into the Defendants' "withholding of clinical trial data that may significantly affect the medical management of hypercholesterolemia, as well as the use of misleading statement [sic] in direct-to-consumer advertisements for prescription medicines."
The Complaint in this action claims that, as a result of Merck’s dissemination of materially false and misleading information, as well as the failure to disclose material facts during the Class Period, the market price of Merck’s common stock was artificially inflated, thereby causing damage to Class Members.
Case Developments
On July 2, 2008, the Honorable Dennis M. Cavanaugh appointed BLB&G clients Jacksonville Police and Fire Pension Fund and the General Retirement System of the City of Detroit, along with other public pension funds, Co-Lead Plaintiffs and BLB&G as Co-Lead Counsel for the Class. On October 6, 2008, the Lead Plaintiffs filed the Consolidated Class Action Complaint.
Defendants moved to dismiss on December 12, 2008. Lead Plaintiffs filed their opposition to the motion to dismiss on February 9, 2009 and an amended opposition brief on February 12, 2009, and Defendants replied on April 9, 2009. On September 2, 2009, Judge Cavanaugh denied Defendants’ motion to dismiss in its entirety. Click here to view the opinion.
Fact discovery is currently proceeding in this case and will remain open until April 30, 2011.
