Merck, Vioxx Loss Could Be Billions: New Orleans Class Action Lawsuit Soon

Author: Steve Sabludowsky | 8/19/2005 Home : Politics

New Orleans, Louisiana--After Merck was found liable by a Texas jury in the first lawsuit involving drug Vioxx, some analysts are saying the total loss to Merck could be up to 18 billion dollars. The jury´s verdict could create serious future financial consequences for Merck, which faces 4,200 lawsuits relating to Vioxx.

The first federal case against Merck is scheduled to go to trial in November in New Orleans which is known to award large jury verdicts in class action damage cases.

Plaintiff Carol Ernst has won her lawsuit in Texas Superior Court, which blames Vioxx for the 2001 death of her husband, Robert Ernst, who was taking the arthritis painkiller at the time of his death. Ernst died of a heart attack. The verdict held Merck liable for the death.

The jury awarded more than $250 million in total damages.

In a statement released after the verdict, Merck said that it was "disappointed" by the verdict and planned to appeal.

"We believe that the plaintiff did not meet the standard set by Texas law to prove Vioxx caused Mr. Ernst´s death," said Jonathan Skidmore of Fulbright & Jaworski, a member of Merck´s defense team.

Merck abruptly recalled Vioxx last fall after evidence showed there could be an increased rate of heart attack and stroke in certain circumstances. Although the Food and Drug Administration has determined the drug is safe enough to be put back on the market, albeit with many restrictions, Merck has yet to do so.

"There are other VIOXX cases coming to trial and we will vigorously defend them one by one over the coming years," said Merck general counsel Kenneth Frasier, in a release.