Merck to Pay Nearly $5 Billion to Settle Vioxx Lawsuits
Pharmaceutical company Merck says it will be $4.5 billion in settlements to the thousands of victims who suffered strokes or heart attacks from taking prescription painkiller Vioxx.
The drug maker pulled Vioxx from pharmacies in September 2004 because a clinical trial proved that using the drug for an extended period of time increased the chances of strokes and heart attacks. Thousands of people have filed personal injury lawsuits claiming they had a heart attack or stroke because they took Vioxx.
The $4.85 billion settlement amount is significantly less than what Merck could have paid had it continued with its original plan to fight every single personal injury lawsuit in court. The amount is equivalent to about a nine-month profit for the pharmaceutical giant. Previous analyst estimates had Merck paying up to $25 billion for the different lawsuits had it continued to fight the lawsuits.
In order for the settlement to go into effect, however, 85% of the plaintiffs who have filed lawsuits in state and federal courts must agree to the terms of the settlement. Plaintiffs are expected to receive about $120,000 each before legal costs from the fund.
The settlement agreement was reached between attorneys for Merck and a committee representing the plaintiffs who sued Vioxx in federal court. If the agreement is accepted by most of the plaintiffs, Merck would not have to pay more than the $4.85 billion cap—regardless of how many new plaintiffs claims and lawsuits are filed.
As part of the terms of the settlement, plaintiffs now will not have to prove that taking Vioxx caused their strokes or heart attacks. They will, however, have to prove that they took Vioxx for no less than 30 days and that their strokes or heart attacks happened within 14 days of the last time they took Vioxx. Injured plaintiffs who had more serious health problems and took Vioxx for longer periods of time will be paid larger settlement amounts.
Vioxx
More than 9.1 million prescriptions have been written for Vioxx, a COX-2 inhibitor drug used to alleviate pain. The FDA approved Vioxx as a painkiller to treat acute pain, menstrual pain, and osteoarthritis. Diarrhea, respiratory infections, high blood pressure, and nausea had been listed as the side effects.
For the first quarter of 2004, Vioxx sales reached $661 million internationally. Beginning in 2000, however, a number of started to show that patients taking Vioxx appeared to be at higher risk of having a stroke or heart attack.
When you take an FDA approved prescription drug, you have the right to expect that your prescription medication will treat your medical condition or illness.
Analysts See Merck Victory in Vioxx Settlement, New York Times, November 10, 2007
Fast Facts on Vioxx, ABC News.com, September 30, 2004
Related Web Resources:
Merck Loses Vioxx Lawsuit: Jury Awards $253.4 Million to Widow, NewsTarget.com, August 19, 2005
Vioxx, Drugs.com
