The settlement agreement, which is subject to court approval, will cost Merck around $680m after deducting available funds from relevant insurance policies and will be paid to investors who purchased Merck securities between 1999 and 2004. Investors launched the class action suit in response to Merck's statements regarding painkiller drug Vioxx, which was pulled from shelves in 2004 after research provided evidence that taking it doubled a patient’s risk of heart attack or stroke. Though the company pleaded guilty in 2011 to federal charges of making false statements and illegally marketing Vioxx as a treatment for rheumatoid arthritis, Merck maintains that the current settlement with investors should not be interpreted as an admission of 'any liability or wrongdoing' by the company, as several other lawsuits relating to Vioxx are ongoing. The company is represented by Evan Chesler of Cravath, Swaine & Moore and Ted Wells of Paul Weiss Rifkind Wharton & Garrison. Sources: Merck; BBC
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