WASHINGTON, DC—The US Supreme court has agreed to hear Merck's challenge to a circuit court decision which allowed investors to sue over Vioxx warnings, even though the suits were filed after the 2-year statute of limitations. The securities fraud case is seen as having broad implications for the pharmaceutical industry.

Shareholders are complaining that Merck misled them about Vioxx's risk, setting them up for major financial losses when the drug was pulled off the market. The investor suits have been consolidated into a class-action lawsuit. The investors contend that the statutory time began in October of 2003, when evidence became public that Merck's public stance was at odds with internal company discussion about Vioxx safety.

The company says the clock began ticking in 2001, when public discussion of Vioxx safety issues began. Merck won on this point in district court, but the federal appeals court in Philadelphia reinstated the suits.
 
According to a statement from Merck, "We believe that the district court in this case correctly held that the intense public discussion of data surrounding Vioxx had put investors on inquiry notice of the relevant issues long before Merck became aware of and announced the new scientific information that led to the voluntary withdrawal."

The case will be heard during the next Supreme Court term, which begins in October.

This case is unrelated to the $4.85 billion Merck agreed to pay in November 2007 to settle thousands of Vioxx lawsuits filed by patients and their survivors. Nearly 50,000 plaintiffs have claimed injury or economic loss under the settlement, and Merck has sent checks to about 10,000 patients claiming heart-related problems and to 900 claiming they suffered strokes as a result of taking Vioxx.