Today's Date: Add To Favorites
Merck: More lawsuits, Justice probe over Vytorin
Biotech | 2008/11/06 09:19
Lawsuits against Merck & Co. and partner Schering-Plough Corp. related to their marketing of cholesterol drug Vytorin are piling up, and the U.S. Department of Justice has begun investigating the drugmakers' conduct, according to a regulatory filing.

The Justice Department's Civil Division notified Merck in a Sept. 10 letter that the department is investigating whether the drugmakers' promotion of Vytorin resulted in false claims to federal health care programs, Merck noted in a filing to the Securities and Exchange Commission late Monday. If so, federal health programs could seek to recover money they have spent on the drug.

A group of 35 state attorneys general are jointly investigating whether the partners violated state consumer protection laws in their marketing of Vytorin, Merck reported.

And, since January, Merck has been served with or become aware of about 140 civil class-action lawsuits alleging consumer fraud claims in connection with two cholesterol drugs sold and promoted by the partners' joint venture. Some lawsuits allege personal injuries or seek medical monitoring for people who used the drugs, the filing said.

"We take this matter very seriously," Skip Irvine, a spokesman for the joint venture, said Tuesday. "We're cooperating with the request for information that the Justice Department is seeking."

Merck also said in the SEC filing that it is cooperating with the other investigators.

Vytorin and one of its components, Zetia, have been blockbusters in the lucrative cholesterol market, with a combined $5.2 billion in 2007 revenue. But repeated bad news about the drugs this year has cut revenue by about 15 percent since last fall — they brought in only a combined $1.1 billion in the third quarter — contributing to new rounds of layoffs at both Merck and Schering-Plough.

In January, under pressure from congressional investigators, the companies released results of a long-delayed study showing that pricey Vytorin was no better at reducing plaque buildup than its second component, a generic cholesterol drug called Zocor costing about one-third as much.

That led to the investigations by congressional committees as to whether the companies deliberately delayed releasing the study's results to boost sales of Vytorin and Zetia, a charge the companies have denied.

The investigations are being conducted by the Senate Finance Committee and the House Committee on Energy and Commerce's Subcommittee on Oversight and Investigations. They have sought witness interviews, documents and information related to the companies' promotion of Vytorin, the delayed release of results on the patient study, called ENHANCE, and stock sales by officers of the companies.

The Oversight and Investigations subcommittee also made requests on Aug. 21 and Sept. 2 for documents and information related to another patient study, called SEAS, that linked Vytorin to a possible increased risk of various cancers and showed it didn't prevent deterioration, surgery or death in patients with diseased heart valves, as the companies had hoped.

"In a normal environment, this would not be a big deal," analyst Steve Brozak of WBB Securities said of the Justice Department investigation. But pharmaceutical companies are getting lots of scrutiny these days, he said, and all the new litigation could distract the companies from their core business.

"It doesn't mean anything today, but it can have a compounding effect that could mean something tomorrow," he said.

Brozak said all the lawsuits by the class-action attorneys and state attorneys general are "a standard piling-on," but the class-action lawyers are familiar with Merck's successful defense strategy from litigation over its withdrawn painkiller Vioxx and are not likely to "make the same mistakes as they did with Vioxx," he said.

Merck shares closed up almost 4 percent at $31.13, and Schering-Plough shares finished the day up almost 7 percent at $15.50 on a generally positive day on Wall Street.



[PREV] [1] ..[4501][4502][4503][4504][4505][4506][4507][4508][4509].. [8290] [NEXT]
All
Class Action
Bankruptcy
Biotech
Breaking Legal News
Business
Corporate Governance
Court Watch
Criminal Law
Health Care
Human Rights
Insurance
Intellectual Property
Labor & Employment
Law Center
Law Promo News
Legal Business
Legal Marketing
Litigation
Medical Malpractice
Mergers & Acquisitions
Political and Legal
Politics
Practice Focuses
Securities
Elite Lawyers
Tax
Featured Law Firms
Tort Reform
Venture Business News
World Business News
Law Firm News
Attorneys in the News
Events and Seminars
Environmental
Legal Careers News
Patent Law
Consumer Rights
International
Legal Spotlight
Current Cases
State Class Actions
Federal Class Actions
Tight US House races in Cali..
North Carolina Attorney Gene..
Republicans take Senate majo..
What to know about the unpre..
A man who threatened to kill..
Ford cuts 2024 earnings guid..
Kenya’s deputy president pl..
South Korean court acquits f..
Supreme Court grapples with ..
Supreme Court leaves in plac..
Kentucky sheriff accused of ..
New rules regarding election..
North Carolina appeals court..
A court in Argentina orders ..
Mexican cartel leader’s son..


Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet.
St. Louis Missouri Criminal Defense Lawyer
St. Charles DUI Attorney
www.lynchlawonline.com
Lorain Elyria Divorce Lawyer
www.loraindivorceattorney.com
Legal Document Services in Los Angeles, CA
Best Legal Document Preparation
www.tllsg.com
Car Accident Lawyers
Sunnyvale, CA Personal Injury Attorney
www.esrajunglaw.com
East Greenwich Family Law Attorney
Divorce Lawyer - Erica S. Janton
www.jantonfamilylaw.com/about
St. Louis Missouri Criminal Defense Lawyer
St. Charles DUI Attorney
www.lynchlawonline.com
Connecticut Special Education Lawyer
www.fortelawgroup.com
  Law Firm Directory
 
 
 
© ClassActionTimes.com. All rights reserved.

The content contained on the web site has been prepared by Class Action Times as a service to the internet community and is not intended to constitute legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. Affordable Law Firm Web Design