Merck Considers Settlement Offers

August 26, 2005

The New York Times reported that Kenneth C. Frazier, Merck's lead attorney, suggested that the pharmaceuticals giant might offer settlements to some plaintiffs asserting Vioxx-related lawsuits. The statement comes as a clear departure from earlier claims that the company was intent defending against every Vioxx injury claim. Frazier said that settlement offers would be considered in actions brought by plaintiffs who took the recalled drug for long periods and exhibited few other risk factors for heart disease.

Presently, Merck is facing nearly 5,000 Vioxx injury lawsuits. Analysts have predicted that Merck can expect to face thousands more. Prospective plaintiffs across the nation were encouraged to take action last week when a jury awarded $253 million to Carol Ernst, the widow of a 59-year-old Texas man who died after taking Vioxx for eight months. The verdict included $229 million in punitive damages.

Frazier denied that Merck had made any changes to its original strategy because of the Texas verdict. Frazier emphasized that each suit would be considered on a case-by-case basis and that Merck does not plan to offer a broad global settlement inclusive of all Vioxx lawsuits. Following the release of Frazier's statements, Merck's stock fell 6 cents per share, closing at $27.77.