Merck lays off thousands as federal Vioxx trial begins
As the federal trial begins today in Houston in the case of Richard “Dicky ” Irvin (the lawsuit has been filed by his widow Evelyn Irvin Plunkett and is being represented by attorney Jere Beasley), Merck seems to recognize that it may have bigger problem on its hands after recall of Vioxx than it ever admitted in the past. It is fairly clear that Merck’s legal troubles are driving it towards a path of financial ruin or even eventual bankruptcy.
After the price of its shares have been in a free fall since the recall of Vioxx was announced, the company has struggled to find solid ground to stand on. In desperate measures since then, the company has responded by laying off lower level employees – as many as 12,000 since September, 2004 (it announced 7,000 job cuts this week along with plans to close/sell five manufacturing plants in order to save about four billion dollars). A good start, many analysts believe, since its liabilities could easily reach $65 billion, according to some estimates.
Developments in the federal trial
While Judge Eldon Fallon has allowed the family of Irvin to present evidence that even rare or short-term use of Vioxx can be fatal, there exists the same problem that led to defeat for Frederick “Mike” Humeston. Irvin took the drug for just 23 days. Merck has been strongly arguing that a patient has to take the drug for 18 months or longer to suffer cardiovascular complications. There is a major difference this time, though. Mr. Irvin is dead while Humeston looked reasonably healthy when he appeared in court.
There are other challenges for the family of Richard Irvin Jr. though. The pool of jurors is drawn from a very conservative part of America – people who voted for President George H.W. Bush and U.S. Representative Tom DeLay. While these two gentlemen may be highly unpopular in the country, in this pro-business, Republican-dominated region, people put business interests above ethics, morals, and integrity. Exactly what Merck would like.
Developments in the New Jersey trials
A win for Merck will not be a surprise in the Irvin case, but things could be very different in the court of Judge Carol Higbee. She has now set February 27, 2006 as the date for the consolidated trial to start in lawsuits filed by Thomas Cona and John McDarby. They both took Vioxx for more than two years before each suffered heart attacks.
Another problem for Merck – Cona’s family is being represented by now celebrity Mark Lanier, the powerful lawyer who scored the first win against Merck in the Carol Ernst case.
Recommended article: Setback to Merck from Judge Carol Higbee
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