NEW YORK, Dec. 10, 2004 (PRIMEZONE) -- Wechsler Harwood LLP ("Wechsler Harwood") announces that it has sued Merck & Co., Inc. ("Merck" or the "Company") (NYSE:MRK) and certain of its officers and directors, in the United States District Court for the Eastern District of Louisiana. The shareholder lawsuit, filed under Sections 11 and 15 of the Securities Act of 1933, is on behalf of all persons and entities who acquired the common stock of Merck between April 26, 2002 and September 30, 2004 (the "Class Period") through Merck's Stock Investment Plan (the "MSIP"). Such stock was issued under the MSIP registration statement (the "Registration Statement") dated April 26, 2002, and prospectuses (the "Prospectuses") dated April 26, 2002, May 1, 2002, and June 10, 2004. The complaint (the "Complaint") alleges that Merck together with its officers and directors, violated the federal securities laws by issuing a series of materially false and misleading statements to the market that were incorporated into the Registration Statement and Prospectuses, in connection with the safety of its drug Vioxx, or failed to make statements necessary to make those previously made statements not materially false and misleading. These misstatements had the effect of materially overstating Merck's actual and projected revenues and earnings and rendering the Registration Statement and Prospectuses materially false and misleading, resulting in damages to MSIP investors.
Specifically, the Complaint alleges that the Registration Statements and Prospectuses, along with the documents they incorporated by reference, failed to disclose material information during the Class Period concerning the safety of its arthritis drug Vioxx, including the fact that a growing body of evidence demonstrated that patients who used the drug for more than 18 months had an increased risk of heart attack. Despite their knowledge that there were serious issues concerning the safety of Vioxx, defendants failed to make appropriate disclosures and, as a result, throughout the Class Period, reported false financial results and continued to issue false and misleading information concerning then-existing conditions concerning Vioxx's safety, risks, and exposure to legal liability. On September 30, 2004, the Company announced that it was immediately withdrawing Vioxx from world markets. This sudden decision was in stark contrast to prior public announcements during the Class Period touting the safety of Vioxx. In response to the announcement, on September 30, 2004, the price of Merck's common stock closed down over 27% from the previous day's close.
If you purchased or otherwise acquired Merck's common stock through the MSIP during the Class Period and if you meet certain other legal requirements, you may file a motion in the Court where this lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than January 31, 2005.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claims are typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. To obtain a copy of the Complaint or to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the action, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Telephone: (212) 935-7400 Toll Free Telephone: (877) 935-7400