More Vioxx related lawsuits filed against Merck

It seems that Merck will spend years dealing with lawsuits arising out of Vioxx recall. Apart from Americans who have suffered strokes and other side effects, there are shareholders that have suffered tremendous losses due to poor Vioxx strategy followed by Merck.

Scott + Scott, LLC has now filed a class action lawsuit on behalf of participants and beneficiaries of the Merck & Co., Inc. Savings and Security Plan and the Employee Stock Purchase and Security Plan. ERISA clients include both union and non-union workers as well as current and former employees.

The complaint alleges that defendants Merck & Co., Inc. and other Plan fiduciaries breached their fiduciary duties under ERISA (the Employee Retirement Income Security Act) by, among other things: (1) failing to properly manage the Plans' assets by imprudently investing a significant amount of the Plans' assets in Merck stock; (2) failing to provide complete and accurate information to participants and beneficiaries; (3) failing to monitor those Defendants who were charged with managing the Plans and their assets; and (4) failing to avoid conflicts of interest with respect to the Plans.

Merck withdrew Vioxx from the market Sept. 30 because the drug significantly increased the risk of heart attacks and strokes in patients taking it longer than 18 months. After the drug had been withdrawn, the Wall Street Journal reported that internal company emails and memos showed that Merck was aware of the problems with Vioxx as early as March 2000, over 4 years before the drug was withdrawn. Also, earlier this week, the SEC and the Department of Justice announced that they were investigating whether Merck misled investors and federal regulators about the safety of Vioxx. Since Vioxx was withdrawn from the market, Merck's stock price has dropped over 40% and is currently trading at an 8 1/2 year low.

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