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Shareholder Action Against Merck Dismissed In Court

Added May 8th, 2006

It has been reported that a shareholders suit against the pharmaceutical giant Merck & Co. has been dismissed by a federal court in New Jersey. The lawsuit alleged breach of executive financial responsibility, stating that the development and marketing of the company’s controversial cox-2 inhibitor drug Vioxx led to a slide in the price of shares.

The consolidated shareholder action was dismissed by the court, according the Merck, and it is also claimed that the court would not allow the plaintiffs to make any amendment to their complaint. The action shareholders tried to take was one where the corporation is ordered to take action against executives for actions that had an adverse effect of the corporation.

Vioxx was once a hugely popular painkiller, but has been at the center of controversy for the last couple of years. It was pulled from the market in 2004 after tests and studies found that it increased the risk of heart attacks and strokes.

Merck is currently the target of many lawsuits that have been filed by those harmed by the medication as well as the families of those that have died as a result of taking the drug.

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