Don't let it get away!
Keep track of the stocks that matter to you.
Help yourself with the Fool's FREE and easy new watchlist service today.
Pharmaceutical powerhouse Merck (NYSE: MRK ) has agreed to settle a class action lawsuit filed in Missouri by Vioxx customers, the company announced yesterday.
Those who filed the lawsuit had purchased Merck's prescription pain reliever Vioxx before it was pulled from the market in 2004 because of concerns about increased risk of heart attack and stroke, but claimed no physical injury. It was filed under the Missouri Merchandising Practices Act. Merck has agreed to pay "to resolve all validated claims submitted by class members," the company said, as well as pay attorneys' fees and administrative costs.
When it was filed in 2004, the class action sought $220 million in total damages for Missouri residents who had purchased Vioxx.
The issue has been previously disclosed by Merck, and a charge was booked in the third quarter of this year to account for the potential amount of the settlement. Merck's general counsel, Bruce Kuhlik, said in a company press release that the agreement is "in the best interest of the company and its shareholders. It reduces the uncertainty of litigation and ongoing defense costs."
The agreement has to be approved by the court before it is final.
RSS Headlines
Fool UK
Comments from our Foolish Readers
Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the
Report this Comment icon found on every comment.
Be the first one to comment on this article.