Don't Count Merck Out Yet!
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I have to tip my hat to Merck. I thought it was silly that company executives decided not to settle all of the litigation surrounding the Vioxx debacle. Instead, the company decided to challenge all of the individual Vioxx lawsuits filed against it. That said, the New York Times reported today that the New Jersey Supreme Court rejected a bid by Vioxx plaintiff lawyers to bring a Vioxx class action suit against Merc which is based in Whitehouse, NJ. The state's highest court reversed two lower court rulings and decided that a nationwide Vioxx class action suit was not appropriate. The suit had been brought by a union health plan on behalf of all insurance plans that paid for Vioxx prescriptions, or about 80 percent of all Vioxx sold. This was huge victory for Merck because New Jersey consumer fraud law allows for triple damages and the class action suit could have cost the company $15 to $18 billion. Further, the company’s strategy of fighting Vioxx lawsuit individually has also paid off. Of the cases that have reached verdicts, Merck has won 9 and lost 5. A new trial was ordered in one case and two ended in mistrials. To the objective observer, Merck is winning–possibly paving the way for the company to reintroduce Vioxx to the market with new restrictions for use.
After the ruling was made public, shares of Merck rose more than 2 percent to $50.47 on Thursday. For those of you who do not follow the stock market, Merck’s share price plummeted to the mid-twenties after the Vioxx situation developed close to two years ago. I guess that is why Mr. Clark and not I is the CEO of Merck.
Until next time….
Good Luck and Good Job Hunting!!!!!!!!!!!!
