FINALLY! Pension Fund of New York Files Suit Against Merck

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Sarbanes Oxley in action:

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December 1, 2004

Pension Fund of New York Files Suit Against Merck

By BARRY MEIER

he main pension fund of New York State filed a federal lawsuit yesterday

against Merck & Company, accusing it of misleading shareholders about the

safety of its arthritis pain drug Vioxx, which has since been withdrawn.

The suit, brought in United States District Court in Trenton, said that the

pension fund lost about $171 million on Sept. 30, when the company, citing

increased heart risks in tests of people who had used Vioxx for more than 18

months, withdrew it from the market. On that day, the price of a share of

Merck stock plummeted 27 percent, and it has since drifted lower. Merck

shares are down almost 40 percent so far this year, though they closed up 35

cents yesterday, at $28.02.

The suit appears to be the first by a pension fund against Merck, which is

based in Whitehouse Station, N.J. A company spokeswoman, Joan Wainwright,

said that about 15 lawsuits had been filed, contending that Merck misled

shareholders. Several hundred personal injury lawsuits have also been filed

against Merck by people claiming to have been injured by Vioxx.

The company has denied any wrongdoing.

In a statement issued yesterday, the New York State comptroller, Alan G.

Hevesi, who is also the pension fund's trustee. maintained that Merck knew

but failed to disclose that growing evidence indicated that Vioxx users were

at increased risk of heart attacks, strokes and death.

" Merck must be held legally responsible for its actions, " Mr. Hevesi said.

" These actions have put lives at risk and cost shareholders billions of

dollars. " Mr. Hevesi's suit is seeking unspecified damages.

Besides the company, the suit names several individuals, including Merck's

chief executive, V. Gilmartin.

Merck executives have disputed suggestions that they acted improperly and

said they moved promptly to withdraw Vioxx after the patients in the

clinical trial - where the drug was being tested as a treatment for colon

polyps - experienced increased risks of cardiovascular problems.

" Merck extensively studied Vioxx before seeking regulatory approval to

market it, " the spokeswoman, Ms. Wainwright, said. " We promptly disclosed

the clinical data about Vioxx. When questions arose, we took additional

steps, including conducting further prospective, controlled studies to gain

more clinical information. "

She said that Merck had not seen Mr. Hevesi's lawsuit and so would not

comment.

In the suit, Mr. Hevesi cited recent newspaper and broadcast reports and

medical journal articles that raised questions about Merck's handling of

safety issues surrounding Vioxx.

Some people raised safety questions after Vioxx's approval in 1999 by the

Food and Drug Administration. In 2000, for instance, a major clinical trial

of the drug found that those taking it had a fivefold greater risk of heart

attacks compared with patients in the trial who took another pain reliever,

naproxen.

Until recently, Merck executives said that those results did not reflect

dangers posed by Vioxx but rather the protective effect of naproxen for

cardiac health.

A spokesman for Mr. Hevesi, Chartier, said that at end of September,

the New York State pension fund owned about 9.4 million shares of Merck.

In the lawsuit filed yesterday, Mr. Hevesi is asking the court to

consolidate all securities-related claims against Merck in connection with

Vioxx into a class action and to make him the lead plaintiff. He also filed

a separate but related lawsuit yesterday in United States District Court in

New Orleans.

The New York State Common Retirement Fund, as the pension fund is formally

known, is the second-largest public pension fund in the country, after

Calpers.

It has some $120.8 billion in assets and more than 970,000 retirees,

beneficiaries and members.

Copyright 2004 The New York Times Company

[Guest guest]

Sarbanes Oxley in action:

http://www.nytimes.com/2004/12/01/business/01merck.html?th= & adxnnl=1 & oref=login & \

adxnnlx=1101953137-p7kKkfOonPG2e/B+0m9N3A & pagewanted=print & position=

December 1, 2004

Pension Fund of New York Files Suit Against Merck

By BARRY MEIER

he main pension fund of New York State filed a federal lawsuit yesterday

against Merck & Company, accusing it of misleading shareholders about the

safety of its arthritis pain drug Vioxx, which has since been withdrawn.

The suit, brought in United States District Court in Trenton, said that the

pension fund lost about $171 million on Sept. 30, when the company, citing

increased heart risks in tests of people who had used Vioxx for more than 18

months, withdrew it from the market. On that day, the price of a share of

Merck stock plummeted 27 percent, and it has since drifted lower. Merck

shares are down almost 40 percent so far this year, though they closed up 35

cents yesterday, at $28.02.

The suit appears to be the first by a pension fund against Merck, which is

based in Whitehouse Station, N.J. A company spokeswoman, Joan Wainwright,

said that about 15 lawsuits had been filed, contending that Merck misled

shareholders. Several hundred personal injury lawsuits have also been filed

against Merck by people claiming to have been injured by Vioxx.

The company has denied any wrongdoing.

In a statement issued yesterday, the New York State comptroller, Alan G.

Hevesi, who is also the pension fund's trustee. maintained that Merck knew

but failed to disclose that growing evidence indicated that Vioxx users were

at increased risk of heart attacks, strokes and death.

" Merck must be held legally responsible for its actions, " Mr. Hevesi said.

" These actions have put lives at risk and cost shareholders billions of

dollars. " Mr. Hevesi's suit is seeking unspecified damages.

Besides the company, the suit names several individuals, including Merck's

chief executive, V. Gilmartin.

Merck executives have disputed suggestions that they acted improperly and

said they moved promptly to withdraw Vioxx after the patients in the

clinical trial - where the drug was being tested as a treatment for colon

polyps - experienced increased risks of cardiovascular problems.

" Merck extensively studied Vioxx before seeking regulatory approval to

market it, " the spokeswoman, Ms. Wainwright, said. " We promptly disclosed

the clinical data about Vioxx. When questions arose, we took additional

steps, including conducting further prospective, controlled studies to gain

more clinical information. "

She said that Merck had not seen Mr. Hevesi's lawsuit and so would not

comment.

In the suit, Mr. Hevesi cited recent newspaper and broadcast reports and

medical journal articles that raised questions about Merck's handling of

safety issues surrounding Vioxx.

Some people raised safety questions after Vioxx's approval in 1999 by the

Food and Drug Administration. In 2000, for instance, a major clinical trial

of the drug found that those taking it had a fivefold greater risk of heart

attacks compared with patients in the trial who took another pain reliever,

naproxen.

Until recently, Merck executives said that those results did not reflect

dangers posed by Vioxx but rather the protective effect of naproxen for

cardiac health.

A spokesman for Mr. Hevesi, Chartier, said that at end of September,

the New York State pension fund owned about 9.4 million shares of Merck.

In the lawsuit filed yesterday, Mr. Hevesi is asking the court to

consolidate all securities-related claims against Merck in connection with

Vioxx into a class action and to make him the lead plaintiff. He also filed

a separate but related lawsuit yesterday in United States District Court in

New Orleans.

The New York State Common Retirement Fund, as the pension fund is formally

known, is the second-largest public pension fund in the country, after

Calpers.

It has some $120.8 billion in assets and more than 970,000 retirees,

beneficiaries and members.

Copyright 2004 The New York Times Company

[Guest guest]

Sarbanes Oxley in action:

http://www.nytimes.com/2004/12/01/business/01merck.html?th= & adxnnl=1 & oref=login & \

adxnnlx=1101953137-p7kKkfOonPG2e/B+0m9N3A & pagewanted=print & position=

December 1, 2004

Pension Fund of New York Files Suit Against Merck

By BARRY MEIER

he main pension fund of New York State filed a federal lawsuit yesterday

against Merck & Company, accusing it of misleading shareholders about the

safety of its arthritis pain drug Vioxx, which has since been withdrawn.

The suit, brought in United States District Court in Trenton, said that the

pension fund lost about $171 million on Sept. 30, when the company, citing

increased heart risks in tests of people who had used Vioxx for more than 18

months, withdrew it from the market. On that day, the price of a share of

Merck stock plummeted 27 percent, and it has since drifted lower. Merck

shares are down almost 40 percent so far this year, though they closed up 35

cents yesterday, at $28.02.

The suit appears to be the first by a pension fund against Merck, which is

based in Whitehouse Station, N.J. A company spokeswoman, Joan Wainwright,

said that about 15 lawsuits had been filed, contending that Merck misled

shareholders. Several hundred personal injury lawsuits have also been filed

against Merck by people claiming to have been injured by Vioxx.

The company has denied any wrongdoing.

In a statement issued yesterday, the New York State comptroller, Alan G.

Hevesi, who is also the pension fund's trustee. maintained that Merck knew

but failed to disclose that growing evidence indicated that Vioxx users were

at increased risk of heart attacks, strokes and death.

" Merck must be held legally responsible for its actions, " Mr. Hevesi said.

" These actions have put lives at risk and cost shareholders billions of

dollars. " Mr. Hevesi's suit is seeking unspecified damages.

Besides the company, the suit names several individuals, including Merck's

chief executive, V. Gilmartin.

Merck executives have disputed suggestions that they acted improperly and

said they moved promptly to withdraw Vioxx after the patients in the

clinical trial - where the drug was being tested as a treatment for colon

polyps - experienced increased risks of cardiovascular problems.

" Merck extensively studied Vioxx before seeking regulatory approval to

market it, " the spokeswoman, Ms. Wainwright, said. " We promptly disclosed

the clinical data about Vioxx. When questions arose, we took additional

steps, including conducting further prospective, controlled studies to gain

more clinical information. "

She said that Merck had not seen Mr. Hevesi's lawsuit and so would not

comment.

In the suit, Mr. Hevesi cited recent newspaper and broadcast reports and

medical journal articles that raised questions about Merck's handling of

safety issues surrounding Vioxx.

Some people raised safety questions after Vioxx's approval in 1999 by the

Food and Drug Administration. In 2000, for instance, a major clinical trial

of the drug found that those taking it had a fivefold greater risk of heart

attacks compared with patients in the trial who took another pain reliever,

naproxen.

Until recently, Merck executives said that those results did not reflect

dangers posed by Vioxx but rather the protective effect of naproxen for

cardiac health.

A spokesman for Mr. Hevesi, Chartier, said that at end of September,

the New York State pension fund owned about 9.4 million shares of Merck.

In the lawsuit filed yesterday, Mr. Hevesi is asking the court to

consolidate all securities-related claims against Merck in connection with

Vioxx into a class action and to make him the lead plaintiff. He also filed

a separate but related lawsuit yesterday in United States District Court in

New Orleans.

The New York State Common Retirement Fund, as the pension fund is formally

known, is the second-largest public pension fund in the country, after

Calpers.

It has some $120.8 billion in assets and more than 970,000 retirees,

beneficiaries and members.

Copyright 2004 The New York Times Company

[Guest guest]

Sarbanes Oxley in action:

http://www.nytimes.com/2004/12/01/business/01merck.html?th= & adxnnl=1 & oref=login & \

adxnnlx=1101953137-p7kKkfOonPG2e/B+0m9N3A & pagewanted=print & position=

December 1, 2004

Pension Fund of New York Files Suit Against Merck

By BARRY MEIER

he main pension fund of New York State filed a federal lawsuit yesterday

against Merck & Company, accusing it of misleading shareholders about the

safety of its arthritis pain drug Vioxx, which has since been withdrawn.

The suit, brought in United States District Court in Trenton, said that the

pension fund lost about $171 million on Sept. 30, when the company, citing

increased heart risks in tests of people who had used Vioxx for more than 18

months, withdrew it from the market. On that day, the price of a share of

Merck stock plummeted 27 percent, and it has since drifted lower. Merck

shares are down almost 40 percent so far this year, though they closed up 35

cents yesterday, at $28.02.

The suit appears to be the first by a pension fund against Merck, which is

based in Whitehouse Station, N.J. A company spokeswoman, Joan Wainwright,

said that about 15 lawsuits had been filed, contending that Merck misled

shareholders. Several hundred personal injury lawsuits have also been filed

against Merck by people claiming to have been injured by Vioxx.

The company has denied any wrongdoing.

In a statement issued yesterday, the New York State comptroller, Alan G.

Hevesi, who is also the pension fund's trustee. maintained that Merck knew

but failed to disclose that growing evidence indicated that Vioxx users were

at increased risk of heart attacks, strokes and death.

" Merck must be held legally responsible for its actions, " Mr. Hevesi said.

" These actions have put lives at risk and cost shareholders billions of

dollars. " Mr. Hevesi's suit is seeking unspecified damages.

Besides the company, the suit names several individuals, including Merck's

chief executive, V. Gilmartin.

Merck executives have disputed suggestions that they acted improperly and

said they moved promptly to withdraw Vioxx after the patients in the

clinical trial - where the drug was being tested as a treatment for colon

polyps - experienced increased risks of cardiovascular problems.

" Merck extensively studied Vioxx before seeking regulatory approval to

market it, " the spokeswoman, Ms. Wainwright, said. " We promptly disclosed

the clinical data about Vioxx. When questions arose, we took additional

steps, including conducting further prospective, controlled studies to gain

more clinical information. "

She said that Merck had not seen Mr. Hevesi's lawsuit and so would not

comment.

In the suit, Mr. Hevesi cited recent newspaper and broadcast reports and

medical journal articles that raised questions about Merck's handling of

safety issues surrounding Vioxx.

Some people raised safety questions after Vioxx's approval in 1999 by the

Food and Drug Administration. In 2000, for instance, a major clinical trial

of the drug found that those taking it had a fivefold greater risk of heart

attacks compared with patients in the trial who took another pain reliever,

naproxen.

Until recently, Merck executives said that those results did not reflect

dangers posed by Vioxx but rather the protective effect of naproxen for

cardiac health.

A spokesman for Mr. Hevesi, Chartier, said that at end of September,

the New York State pension fund owned about 9.4 million shares of Merck.

In the lawsuit filed yesterday, Mr. Hevesi is asking the court to

consolidate all securities-related claims against Merck in connection with

Vioxx into a class action and to make him the lead plaintiff. He also filed

a separate but related lawsuit yesterday in United States District Court in

New Orleans.

The New York State Common Retirement Fund, as the pension fund is formally

known, is the second-largest public pension fund in the country, after

Calpers.

It has some $120.8 billion in assets and more than 970,000 retirees,

beneficiaries and members.

Copyright 2004 The New York Times Company