N.J. High Court Sides with Vioxx
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New Jersey's Supreme Court rejected a huge class-action lawsuit against drugmaker Merck & Co.(MRK) over its withdrawn painkiller Vioxx on Thursday, reversing two previous lower-court decisions.
The suit was brought by a union health plan on behalf of all insurance plans that paid for Vioxx prescriptions. A lawyer for the New Jersey union says the case could be worth more than $15 billion if Merck loses.
The Whitehouse Station-based company pulled Vioxx from the market three years ago after research showed it doubled risk of heart attacks and strokes.
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Lawyer Chris Seege has argued that if Merck had disclosed those risks earlier, prescription plans would have favored other painkillers.
A state judge and then an appeals court approved the class action, but Merck appealed to the New Jersey Supreme Court, which ruled a nationwide class is not appropriate.
Merk shares rose 16 cents to $49.56 in early trading.