Friday, January 15, 2016 7:00 am EST
KENILWORTH, N.J.--(BUSINESS WIRE)--Merck (NYSE:MRK), known as MSD outside the United States and Canada, today announced that it has reached an agreement with plaintiffs to resolve In re Merck & Co., Inc. Securities Litigation, a multi-district class action lawsuit pending in New Jersey federal court. The settlement class consists of persons who purchased Merck securities during the period from May 21, 1999, through Oct. 29, 2004, inclusive, and who seek to recover damages under the federal securities laws for certain Merck statements regarding Vioxx.
Under the agreement, Merck will pay $830 million to resolve the settlement class members' claims, plus an additional amount for approved attorneys' fees and expenses. After available funds under certain insurance policies, Merck's cash payment for the settlement and fees will be approximately $680 million, for which the company will record a charge in the fourth quarter of 2015, which will be excluded from non-GAAP results. The agreement is subject to court approval.
The settlement does not constitute any admission by Merck or any of the individual defendants of any liability or wrongdoing.
Merck still faces previously disclosed individual securities lawsuits related to Vioxx.
Judge Stanley R. Chesler is presiding over the case. Merck is represented by Evan Chesler of Cravath, Swaine & Moore LLP and Ted Wells of Paul Weiss Rifkind Wharton & Garrison LLP.
Today's Merck is a global health care leader working to help the world be well. Merck is known as MSD outside the United States and Canada. Through our prescription medicines, vaccines, biologic therapies and animal health products, we work with customers and operate in more than 140 countries to deliver innovative health solutions. We also demonstrate our commitment to increasing access to health care through far-reaching policies, programs and partnerships. For more information, visit www.merck.com and connect with us on Twitter, Facebook, YouTube and LinkedIn.
Forward-Looking Statement of Merck & Co., Inc., Kenilworth, N.J., USA
This news release of Merck & Co., Inc., Kenilworth, N.J., USA (the "company") includes "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the company's management and are subject to significant risks and uncertainties. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.
Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the company's ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the company's patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions.
The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company's 2014 Annual Report on Form 10-K and the company's other filings with the Securities and Exchange Commission (SEC) available at the SEC's Internet site (www.sec.gov).
Lainie Keller, 908-236-5036
Steven Cragle, 908-740-1801
Teri Loxam, 908-740-1986
Justin Holko, 908-740-1879