A class action lawsuit was filed on October 1, 2004 against Merck & Company on behalf of shareholders who purchased Merck securities, including common stock, between October 30, 2003 and September 29, 2004, the law firm Wolf Haldenstein Adler Freeman & Herz LLP said in a press release.

The lawsuit, filed in U.S. District Court for the District of New Jersey, seeks to recover damages on behalf of all class members who purchased Merck stock during the Class Period.

The complaint alleges that Merck failed to disclose material information during the Class Period concerning the safety profile of its arthritis drug Vioxx, and that a growing body of evidence demonstrated that patients who used the drug for more than 18 months were exposed to an increased risk of heart attack.

Specifically, on September 30, 2004, the Merck announced that it was immediately withdrawing Vioxx from all world markets after a study confirmed that Vioxx increases a patients’ risk of heart attack and stroke.

The Company’s sudden decision to withdraw Vioxx was in contrast to its prior public announcements during the Class Period touting the safety of Vioxx and other public disclosures by the Company and its representatives that specifically refuted criticism of the drug lodged by respected clinicians, attorneys for the plaintiffs assert.

The announcement came only one month after Merck issued a press release refuting reputable clinicians’ criticisms of Vioxx and its safety profile and on the heels of the Company obtaining approval to market the drug for the treatment of juvenile arthritis and migraines.

Merck’s common stock dropped 25%, or $12 per share, on September 30, 2004 after the company recalled Vioxx. The resulting market capitalization loss was about $26 billion.

(via PR Newswire)