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Merck offers Vioxx payout

By Gregory Lopes
November 10, 2007

Russ M. Herman (left), a New Orleans lawyer and chairman of a Vioxx plaintiffs' negotiating committee, met yesterday with Don Hubbard, who had a stroke after taking Vioxx, and Sheila Stallworth, whose physician husband died after taking Vioxx.

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Merck & Co. announced yesterday it will pay $4.85 billion to settle as many as 47,000 lawsuits over injuries linked to its big-selling Vioxx painkiller.

Merck, the third-largest drug company in the United States, will put the money into a settlement fund for people harmed by the drug, which was linked to an increased risk of heart attacks and strokes as well as other side effects.

Most of the settlement, $4 billion, will go to heart-attack victims. The rest of the payout goes to those who suffered a stroke.

Merck withdrew Vioxx from the market in September 2004 after a study proved the link to heart attacks and strokes.

Bruce Vincent, a spokesman for the Lanier Law Firm, which represents plaintiffs who will benefit from the fund, said the standard payment to lawyers will be 30 percent to 33 percent of the recovery amount for each case.

Plaintiffs will receive different settlement payments depending on the severity of their injuries and the length of time they took Vioxx. The payout can take effect only if 85 percent of all plaintiffs agree to drop their cases.

For Merck, the settlement stops the enormous legal fees, which were approaching $2 billion, and will allay any fears that Vioxx lawsuits might bankrupt the company or even have a significant financial impact.

"This is a good and responsible agreement that will allow the company to concentrate even more fully on its mission of discovering, developing and delivering novel medicines and vaccines," said Merck Chairman and Chief Executive Officer Richard Clark.

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