Merck Wins Dismissal of Securities Fraud Cases
Merck & Co. has won a dismissal of federal securities lawsuits that say Merck defrauded investors before it withdrew Vioxx from the market in September 2004. Investors filing the lawsuit say that Merck was aware of Vioxx's health effects before it was pulled from the market. Kent Jarrell, a Merck spokesman, says of the ruling, "we're very satisfied that the judge agreed with out arguments." However, Darren Robins, a San Diego-based lawyer representing shareholders, said that, "the abuses surrounding Vioxx are some of the most egregious in recent memory. The dismissal of this case is a very unfortunate development for the company's shareholders at the time this all occurred.''
U.S. District Court Judge Stanley Chesler said that "[investors] have not argued that they conducted a diligent investigation, and nothing in the complaint demonstrates that they were unable to uncover pertinent information during the limitations period."
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