Merck Fights Class Action Brought by Insurers
A lawyer for Merck & Co. argued that health insurers and union health plans should not be allowed to sue Merck & Co. for the money that they paid for Vioxx prescriptions. New Jersey State Superior Court Judge Carol Higbee, allowed class-action status to Vioxx lawsuits in July 2005. A state court decided in March 2006 that insurance companies could pursue a lawsuit against Merck, leading to Merck's appeal. Such a lawsuit could possibly cost Merck more than $15 billion.
John Beisner, Merck's lawyer, told judges that health insurance companies each used different information and made their own decisions as to whether their plans would cover Vioxx. Beisner added that consumer fraud laws in the state in which a lawsuit was filed should apply to the lawsuit, as opposed to using New Jersey law in each case. "It would be a radical departure from how the Consumer Fraud Act has been interpreted previously," said Beisner.
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