Merck announced today that it is disappointed with the U.S. Supreme Court's decision to affirm a lower court's ruling on when the statute of limitations began to run in a federal securities class action against the company and certain of its officers and directors. The effect of the ruling is to return the case to federal district court in New Jersey for further proceedings.
“The company has already made a motion to dismiss the operative complaint on numerous other grounds, and will renew that motion in the district court.”
The original suit, brought by investors, who allege that the company made material misstatements and omissions regarding the pain medication VIOXX®, was dismissed by the U.S. District Court for the District of New Jersey in 2007, on the ground that the claims were time-barred under the statute of limitations. In 2008, however, a divided Court of Appeals for the Third Circuit reversed the district court's ruling. In May 2009, the Supreme Court agreed to hear Merck's appeal.
"Merck is disappointed in today's decision, but believes that the allegations in the complaint are unfounded and will continue to defend itself vigorously," said Bruce Kuhlik, Merck Executive Vice President and General Counsel. "The company has already made a motion to dismiss the operative complaint on numerous other grounds, and will renew that motion in the district court."
Kannon K. Shanmugam of Williams & Connolly LLP argued the case before the Supreme Court for Merck. The company is also represented by Cravath, Swaine & Moore LLP.
Status of Other Litigation
Other shareholder cases relating to Vioxx, including individual securities actions and claims brought under the Employee Retirement Income Security Act, are still pending in federal court in New Jersey. In November of 2007, Merck entered into an agreement to resolve state and federal myocardial infarction and ischemic stroke personal injury claims filed or tolled by November 9, 2007. More than 99 percent of all eligible personal injury claimants enrolled in the program and the program is proceeding as scheduled with payments expected to be completed later this year.