CHICAGO, Nov. 2, 2004 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that it has sued Merck & Co., Inc. ("Merck" or the "Company") (NYSE:MRK) and certain of its officers and directors, in the United States District Court for the District of New Jersey. The shareholder lawsuit is on behalf of all persons and entities who purchased or otherwise acquired the common stock of Merck & Co., Inc. on the open market and/or through Merck's Stock Investment Plan between October 22, 2003 and September 29, 2004, inclusive ("Class Period").
The Complaint alleges that Merck and its Chairman and CEO, Raymond V. Gilmartin, violated the federal securities laws by issuing a series of materially false and misleading statements to the market in connection with the safety of its drug Vioxx. These misstatements have had the effect of materially overstating Merck's actual and projected revenues and earnings, and as result they artificially inflated the market price of Merck's common stock during the class period.
If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden, Melinda J. Morales, or Conor R. Crowley at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to Merck.
Specifically, the Complaint alleges that defendants failed to disclose material information during the Class Period concerning the safety profile of its arthritis drug Vioxx, and that a growing body of evidence demonstrated that patients who used the drug for more than 18 months were exposed to an increased risk of heart attack. Despite their knowledge that there were serious issues concerning the safety profile of Vioxx and of the mounting adverse data from trials worldwide supporting the conclusion that long term use of Vioxx increased significantly the risk of heart attack, defendants failed to take appropriate financial steps and as a result, throughout the class period, reported false financial results and continued to issue false and misleading projected revenues and earnings, in press releases and filings with the SEC. Merck's actual and projected revenues and earnings disseminated by defendants were artificially inflated because: a) Merck failed to record appropriate reserves for legal claims arising out of heart damage suffered by users of Vioxx; b) Merck failed to take appropriate reserves for the inventories of Vioxx already sold to wholesalers and others which would have to be repurchased by Merck in light of the heart safety concerns attached to Vioxx and the probable withdrawal of the drug from the market; c) defendants lacked any reasonable basis in fact for their statements that for 2004, Vioxx would contribute approximately $2.5 billion in annual revenues and significant operating profit in light of the known heart safety concerns associated with long term use of Vioxx and the probable withdrawal of the drug from the market.
On September 30, 2004, the Company announced that it was immediately withdrawing Vioxx from world markets after a data safety monitoring board, overseeing a long-term study of the drug, recommended that the study be halted because of an increased risk of serious cardiovascular events among members of the study group. The Company's sudden decision to withdraw Vioxx was in stark contrast to its prior public announcements during the Class Period touting the safety of Vioxx and other public disclosures by the Company and its representatives that specifically refuted criticism of the drug lodged by respected clinicians. In response to the announcement, on September 30, 2004 the price of Merck's common stock plunged to end down over 27% from the previous day's close.
If you purchased or otherwise acquired the common stock of Merck & Co., Inc. on the open market and/or through Merck's Stock Investment Plan during the Class Period and if you meet certain other legal requirements, you may file a motion in the Court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than November 30, 2004.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca