Merck & Co., Inc. is pleased that the New Jersey Supreme Court reversed a lower court ruling that granted nationwide class-action status to insurance companies and HMOs seeking reimbursement for Vioxx expenditures. Merck had opposed class-action status in the case.
The court agreed with Merck that the case was not an appropriate one to be handled as a class action because the claims of the insurance companies and HMOs involved different facts.
"The Supreme Court recognized that a class action was improper because each insurance company and HMO considered different types of information in deciding whether to reimburse patients for Vioxx, and they all went through varied processes with different experts in making those decisions," said Ted Mayer of Hughes Hubbard & Reed, outside counsel for Merck.
John Beisner of O'Melveny and Myers argued the case on behalf of Merck. The case is International Union of Operating Engineers Local 68 Welfare Fund v. Merck.
As of June 30, 2007, the claims of more than 4,620 plaintiff groups have been dismissed before being scheduled for trial. Of these, there have been more than 1,170 plaintiff groups whose claims were dismissed with prejudice either by plaintiffs themselves or by the courts, meaning they cannot be filed again. More than 3,450 additional plaintiff groups have had their claims dismissed without prejudice, meaning they can be filed again.
Juries have decided in favour of Merck 10 times and in plaintiffs' favour five times. There have been two unresolved mistrials and a federal judge recently set aside one of Merck's 10 verdicts. Merck is pursuing its options for post-trial relief and appellate review with respect to each of the plaintiffs' verdicts.