US-based Merck reached an agreement with the executive committee of the plaintiffs’ steering committee of the federal multidistrict Vioxx litigation as well as representatives of plaintiffs’ counsel in state co-ordinated proceedings to resolve the litigation. Thousands of lawsuits have been launched against Merck since the company discovered a link between Vioxx and an increased risk of heart attack and stroke, and subsequently withdrew the drug from the market.
According to Merck, the agreement is not an admission of causation or fault, but a way of ending litigation against the company which could drag on for years. If 85% of current claimants accept Merck’s proposal, the fixed amount will be split between the claimants based on the merits of the individual case.
“This agreement is the product of our defense strategy in the US during the past three years and is consistent with our commitment to defend each claim individually through rigorous scientific scrutiny. Under the agreement, there will be an orderly, documented and objective process to examine individual claims to determine if they qualify for payment,” said Bruce Kuhlik, senior vice president and general counsel of Merck.
“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.”
Russ Herman, liaison counsel in the federal multidistrict Vioxx litigation and chair of the plaintiffs’ negotiating committee, said: “This is an opportunity to end a long and difficult litigation that has stretched on for more than three years. A fair resolution is in everybody’s best interest. This agreement would only apply to claims already filed or tolled.”