WHITEHOUSE STATION, New Jersey—Merck & Co, Inc, announced today that it will pay $4.85 billion to settle 27,000 lawsuits brought by plaintiffs claiming harm to themselves or to family members from taking rofecoxib (Vioxx®), a drug the company pulled off the market 3 years ago.¹

Merck's initial strategy was to fight every lawsuit individually. The company won most cases, after losing a $250 million verdict in one of the first cases; nonetheless, legal fees were costing the company more than $600 million per year.

Plaintiffs are expected to receive about $100,000 each before legal fees and expenses, which are usually about 30% of the plaintiff's award. Settlement payments will depend on the length of time the plaintiff took Vioxx and the severity of injury.

Merck has entered into an agreement with the law firms that comprise the plaintiffs' steering committee of the federal multidistrict Vioxx litigation as well as representatives of plaintiffs' counsel in state coordinated proceedings. This settlement includes about 27,000 suits and 47,000 sets of plaintiffs. The settlement becomes binding only if 85% of plaintiffs agree to it.

To qualify, claimants must have objective, medical proof of myocardial infarction (MI) or ischemic stroke, documented receipt of at least 30 Vioxx pills, and receipt of pills in sufficient number and proximity to the event to support a presumption that the drug was taken within 14 days before the claimed injury.

Merck's total payment for both funds of $4.85 billion ($4 billion for MI claims and $850 million for ischemic stroke claims) is a fixed amount to be allocated among qualifying claimants.

Bruce N. Kuhlik, senior vice president and general counsel of Merck, said in a prepared statement, "This agreement also makes sense for the company because since 2004, we have reserved approximately $1.9 billion for defending Vioxx litigation and, absent this agreement, could anticipate that the litigation might stretch on for years."

Reference