Federal judge dismisses Vioxx securities class action Gabriel Haboubi at 3:35 PM ET
[JURIST] A New Jersey federal judge dismissed a class action brought by investors of Merck & Co. [corporate website] Thursday, ruling that the suit was filed after the statute of limitations had run [Merck press release]. The investors had said that Merck had deliberately concealed information from them about the safety record of its arthritis drug Vioxx [JURIST news archive]. US District Court Judge Stanley Chester determined that the clock on the two-year statute of limitations started to run in September 2001 with the release of a warning letter [text] from the Food and Drug Administration [official website], coupled with subsequent attention from financial analysts and members of the press. The first fraud complaint against the company was filed in November of 2003. Since the lawsuit was dismissed with prejudice, it may not be filed again.
Merck pulled Vioxx from the market in September 2004 after a study showed that it could double the risk of heart attack or stroke if taken for more than 18 months. The price of Merck stock jumped by almost 10% following news of the class action dismissal. AP has more.
Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible, ad-free format.