Merck Agrees To Settle 27,000 Vioxx Lawsuits For $4.85B

Main Category: Litigation / Medical Malpractice
Also Included In: Pharma Industry / Biotech Industry;  Cardiovascular / Cardiology
Article Date: 12 Nov 2007 - 10:00 PDT

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Merck on Friday announced an agreement to pay $4.85 billion to settle about 27,000 lawsuits filed over allegations that the COX-2 inhibitor Vioxx -- which the company withdrew from the market in September 2004 because of concerns about increased risk for cardiovascular events -- caused patient deaths or injuries, the Washington Post reports. According to the Post, the agreement, announced this morning, "will clear away a thicket of litigation in state and federal courts that was producing mixed results for both sides, with plaintiffs and the company each claiming victories" (Schneider, Washington Post, 11/9).

Merck over the last two years has faced almost 20 Vioxx trials nationwide and has won most of the cases that have reached juries, "giving plaintiffs little choice but to settle," the New York Times reports (Berenson, New York Times, 11/9). Merck officials previously had said that the company would fight each of the Vioxx lawsuits individually, rather than agree to a global settlement (Won Tesoriero, Wall Street Journal, 11/9).

Under the agreement, Merck and a committee of plaintiff attorneys will evaluate Vioxx lawsuits that remain out of court. Merck will place the $4.85 billion in a fund, and the company and the committee will establish a procedure to review medical evidence of heart attacks and strokes experienced by patients who took Vioxx (Washington Post, 11/9). Plaintiffs will receive different settlements based on the length of time that patients took Vioxx and the severity of the injuries that they experienced (AP/Wichita Eagle, 11/9).

The agreement requires approval by 85% of plaintiffs (Washington Post, 11/9). Based on the amount of the fund, plaintiffs on average will receive settlements of about $100,000 before legal fees. Plaintiffs who decline to accept the agreement can pursue individual lawsuits, but, "with so many of the top trial lawyers in the United States agreeing to the deal, they may have difficulty doing so," according to the Times (New York Times, 11/9).

Comments
Russ Herman, chair of a committee of plaintiff attorneys established to negotiate with Merck, said, "Creating a process to look at individual claims is the fairest way to efficiently and quickly provide payment to qualified claimants." He added, "Specific causation has been a very difficult issue. This is an opportunity to end a long and difficult litigation that has stretched on for more than three years."

Bruce Kuhlik, general counsel and a senior vice president for Merck, said, "Absent this agreement," the company "could anticipate that the litigation might stretch on for years" (Washington Post, 11/9). According to the Times, Merck has spent about $1.2 billion on legal fees related to Vioxx lawsuits, and the agreement "will put to rest any fears that Vioxx lawsuits might bankrupt the company, or even have a significant financial impact" (New York Times, 11/9).

NPR's "Morning Edition" on Friday reported on the agreement (Montagne, "Morning Edition," NPR, 11/9). Audio of the segment is available online.

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation© 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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