Merck & Co., the third-largest U.S. drugmaker, may pay about $5 billion to settle claims that it hid the health risks of the withdrawn Vioxx painkiller.
Three years after withdrawing Vioxx from the market, Merck has agreed to pay $4.85 billion to settle 27,000 lawsuits by people who claim they or their family members suffered injury or died after taking the drug, according to two lawyers with direct knowledge of the matter.
Merck withdrew Vioxx from the market in September 2004, after a clinical trial proved that it increased the risks of heart attacks and strokes.
Litigation
The settlement, one of the largest ever in civil litigation, comes after nearly 20 Vioxx civil trials over the last two years from New Jersey to California.
After losing a $253 million verdict in the first case, Merck has won most of the rest of the cases that reached juries, giving plaintiffs little choice but to settle.
The settlement will help put Vioxx behind Merck, as well as sharply reduce its Vioxx-related legal defense fees, which are now running at more than $600 million annually.
The New Jersey-based company has already set aside about $1.8 billion to cover for the costs while refusing to create a reserve for its potential liability.
Merck officials confirmed early today they have been in talks with lawyers for former Vioxx users. They added that they haven't yet reached a ``finalized agreement'' on the settlement.
November 9 2007
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