In Re Merck (Vytorin) 2008 ERISA Litigation
June 2008 - A class action filed in U.S. District Court for the District of New Jersey on behalf of participants and beneficiaries of the Merck & Co., Inc. (Merck) 401(k) Plans for violations of the federal pension law (ERISA) in connection with the loss of value in Merck stock acquired and held by present and former employees of Merck through the Plans. The goal of this litigation is to recover damages sustained by the participants and beneficiaries of the Plans.
The complaint alleges, among other things, that Defendants failed to take action to protect the Plans from misrepresentations and omissions regarding the health and financial risks associated with Vytorin, Merck’s prescription anti-cholesterol drug. As a result of the failure to disclose that Vytorin was being promoted in the absence of evidence that it had any medical benefit over other similar drugs, the value of Merck stock and the Plans’ investments in the Merck stock have been substantially diminished.
Plaintiffs allege that it was imprudent for the Plans to invest in Merck stock because the price of shares were artificially inflated as a result of undisclosed material adverse information concerning Vytorin’s lack of medical benefit.