Merck & Co., a New Jersey-based pharmaceutical manufacturer, has announced the preliminary settlement of the securities class action pending against the company in the D. of New Jersey. The case is actually two cases – against Merck and Schering-Plough Corp. – based on the companies’ failure to disclose the bad results of a clinical trial of the anti-cholesterol drug Vytorin (which the companies jointly sold). Merck and Schering-Plough merged in 2009. The cases were scheduled to go to trial next month.
The settlement is for $688 million, with the company paying $215 million to resolve the securities class action against the Merck defendants and $473 million to resolve the securities class action against the Schering-Plough defendants. (Note that this case is different than the Vioxx-related securities class action against Merck that led to a 2010 U.S. Supreme Court decision. The Vioxx-related case is still pending and class certification was granted last month.)
There is extensive press coverage of the settlement, including in the New York Times, Reuters, and Bloomberg.
The 10b-5 Daily 