The Supreme Court decided unanimously on Tuesday to allow investors to sue drugmaker Merck & Co. for money lost when Vioxx was pulled from shelves because of high risks associated with the painkiller. Investors allege the company failed to provide adequate and timely information about the drug’s hazards — a doubled risk of heart attack, stroke and death. After Vioxx was recalled, Merck stock plummeted, and shareholders lost a combined $28 billion, according to the Associated Press.
Merck is disappointed in today’s decision, but believes that the allegations in the complaint are unfounded and will continue to defend itself vigorously,” said Bruce Kuhlik, the drugmaker’s executive vice president and general counsel. “The company has already made a motion to dismiss the operative complaint on numerous other grounds, and will renew that motion in the district court.”
The question of whether to allow the case to proceed centered on a rule requiring investors to sue a company for fraudulent behavior within two years of discovering the facts of the alleged violation. Investors sued in November 2003, and Merck argued that the two-year clock should have begun when the Food and Drug Administration first issued warnings about Vioxx in September 2001.
Merck also faces a slew of lawsuits over Vioxx from patients and state governments.
Related: Merck Didn’t Warn of Heart Attack Risk, Louisiana Official Says
