LOS ANGELES, July 15, 2002 (PRIMEZONE) -- Notice is hereby given that the Glancy & Binkow LLP commenced a Class Action lawsuit in the United States District Court for the District of New Jersey on behalf of a class (the "Class") consisting of all persons who purchased securities of Merck & Co., Inc. ("Merck" or the "Company") (NYSE:MRK) between July 1, 1999 and June 21, 2002, inclusive (the "Class Period").
The Complaint charges Merck and certain of its officers and directors with violations of federal securities laws. Among other things, plaintiff claims that defendants had materially overstated Merck's revenues by improperly including as revenue the value of co-payments made by consumers to their pharmacy to cover their portion of the cost of a prescription under an insurance plan. The complaint alleges that, during the Class Period, the Company overstated its revenue by billions of dollars (by approximately $4.6 billion in year 2001 alone) because neither Merck nor its Medco unit ever received any revenue from the co-payments that were made to pharmacies. As a result, during the Class Period, defendants' financial statements were materially overstated and failed to comply with Generally Accepted Accounting Principles ("GAAP"). The complaint alleges that defendants' material omissions and the dissemination of materially false and misleading statements regarding the nature of Merck's revenues and earnings caused the Company's stock price to become artificially inflated, inflicting damages on investors.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy & Binkow LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than August 30, 2002, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy & Binkow LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9161 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.