Merck reaffirms its Vioxx lawsuits strategy

As Merck's stock price continues to slide and advice from all quarters is that the company should give up its strategy of fighting thousands of lawsuits, the company is fighting back. Almost immediately after the verdict that Merck caused the death of Robert Ernst and should pay approximately $26 million to Carol Ernst (the award will be reduced from the original $253 million under Texas laws), the company announced its decision to appeal.

The appeal had no effect on Wall Street as investors fleed the stock and analysts raised their liability estimates by tens of billions of dollars. In another desperate attempt to fight back, Kenneth Frazier, the general cousel at Merck, reaffirmed his firms strategy to deal with each Vioxx victim on an individual basis. "This is the first of many trials. Each case has a different set of facts. Regardless of the outcome in this single case, the fact remains that plaintiffs have a significant legal burden in proving causation," he said in a statement hoping to discourage further litigation. News reports from around the world, particularly Britain, Australia, New Zealand, Canada and France indicate that the lawyers in these countries are either getting ready to file their lawsuits or working with their peers in the US to help them. Some are already calling for out-of-court settlements.

Merck is not discouraged, however, either by the verdict in Texas or the explosion in lawsuits since the verdict was announced last week. "The case presented to the jury by the plaintiff was fundamentally flawed. The jury was allowed to hear testimony that was not based on reliable science and that was irrelevant. We intend to appeal the verdict. Our appeal is not about legal technicalities but about basic rights to a fair trial."

Recommended article: Vioxx victims have a strong case against Merck