Merck Hit by Flood of Vioxx Lawsuits
Eight weeks after a Texas jury handed drug maker Merck & Co. a $253-million verdict in its first Vioxx product liability trial, the number of Vioxx lawsuits is rising like floodwater.
More than 1,000 new Vioxx cases have been filed in New Jersey alone since late August, including 800 in September, and more than 500 new cases are pending in federal court.
Based on interviews by Associated Press, it appears that Whitehouse Station, N.J.-based Merck now faces more than 6,500 Vioxx lawsuits, up from about 5,000 in the company’s last status report.
Nearly all are product liability cases, often called personal injury suits. Attorneys and New Jersey court personnel say many were filed because plaintiffs in a handful of states faced a deadline of one year from when Merck pulled the blockbuster painkiller from the market -- Sept. 30, 2004 -- after research showed that it doubled the risk of heart attack and stroke with long-term use.
Some new cases were triggered by the huge Texas verdict, which will be slashed under that state’s caps on punitive damages, and others by lawyers hurrying up to file suits so they could get in line for an eventual jury trial or settlement, lawyers say.
“There will be an avalanche at two years,” the end of the statute of limitations in many states, plaintiff’s attorney Chris Seeger said.
“The new filings are not unexpected and do not change our strategy,” Merck spokesman Kent Jarrell said via e-mail. “Right now we are concentrating on defending each and every case we face.”
New Jersey is the most popular venue because Merck cannot move cases in its home state to federal court, which plaintiff’s lawyers view as less friendly.
New Jersey has a two-year statute of limitations, with the clock starting when the plaintiff first knew he or she had reason to sue. Attorneys are taking that kickoff to be the day Merck withdrew its $2.5-billion-a-year arthritis pill from the market.
The lawsuits generally allege that Vioxx caused cardiovascular problems, including heart attacks, strokes and dangerous blood clots, or kidney damage or gastrointestinal bleeding. Most seek financial compensation, but some seek medical monitoring for Vioxx users who have not yet suffered health problems.
Merck has set aside reserves of $675 million for its legal costs but it has not set up a fund to pay for settlements or jury awards.
Its shares rose 3 cents Thursday to $26.81, down from nearly $45 before Vioxx was pulled.
