Merck Resolves Previously Disclosed Securities Class Action Lawsuit Related to Vioxx
January 15, 2016 7:00 am ET
Merck (NYSE:MRK), known as MSD outside the United States and Canada,
today announced that it has reached an agreement with plaintiffs to
resolve In re Merck & Co., Inc. Securities Litigation, a
multi-district class action lawsuit pending in New Jersey federal court.
The settlement class consists of persons who purchased Merck securities
during the period from May 21, 1999, through Oct. 29, 2004, inclusive,
and who seek to recover damages under the federal securities laws for
certain Merck statements regarding Vioxx.
Under the agreement, Merck will pay $830 million to resolve the
settlement class members’ claims, plus an additional amount for approved
attorneys’ fees and expenses. After available funds under certain
insurance policies, Merck’s cash payment for the settlement and fees
will be approximately $680 million, for which the company will record a
charge in the fourth quarter of 2015, which will be excluded from
non-GAAP results. The agreement is subject to court approval.
The settlement does not constitute any admission by Merck or any of the
individual defendants of any liability or wrongdoing.
Merck still faces previously disclosed individual securities lawsuits
related to Vioxx.
Judge Stanley R. Chesler is presiding over the case. Merck is
represented by Evan Chesler of Cravath, Swaine & Moore LLP and Ted Wells
of Paul Weiss Rifkind Wharton & Garrison LLP.
Today’s Merck is a global health care leader working to help the world
be well. Merck is known as MSD outside the United States and Canada.
Through our prescription medicines, vaccines, biologic therapies and
animal health products, we work with customers and operate in more than
140 countries to deliver innovative health solutions. We also
demonstrate our commitment to increasing access to health care through
far-reaching policies, programs and partnerships. For more information,
visit www.merck.com and
connect with us on Twitter, Facebook, YouTube and LinkedIn.
Forward-Looking Statement of Merck & Co., Inc., Kenilworth, N.J., USA
This news release of Merck & Co., Inc., Kenilworth, N.J., USA (the
“company”) includes “forward-looking statements” within the meaning of
the safe harbor provisions of the U.S. Private Securities Litigation
Reform Act of 1995. These statements are based upon the current beliefs
and expectations of the company’s management and are subject to
significant risks and uncertainties. If underlying assumptions prove
inaccurate or risks or uncertainties materialize, actual results may
differ materially from those set forth in the forward-looking statements.
Risks and uncertainties include but are not limited to, general industry
conditions and competition; general economic factors, including interest
rate and currency exchange rate fluctuations; the impact of
pharmaceutical industry regulation and health care legislation in the
United States and internationally; global trends toward health care cost
containment; technological advances, new products and patents attained
by competitors; challenges inherent in new product development,
including obtaining regulatory approval; the company’s ability to
accurately predict future market conditions; manufacturing difficulties
or delays; financial instability of international economies and
sovereign risk; dependence on the effectiveness of the company’s patents
and other protections for innovative products; and the exposure to
litigation, including patent litigation, and/or regulatory actions.
The company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise. Additional factors that could cause results
to differ materially from those described in the forward-looking
statements can be found in the company’s 2014 Annual Report on Form 10-K
and the company’s other filings with the Securities and Exchange
Commission (SEC) available at the SEC’s Internet site (www.sec.gov).
Lainie Keller, 908-236-5036
Steven Cragle, 908-740-1801
Teri Loxam, 908-740-1986
Justin Holko, 908-740-1879