Merck Reaches $220M Vioxx Class Action Settlement

The Vioxx settlement will resolve a 2004 class action lawsuit, titled Plubell, et al. v. Merck & Co., that accuses Merck of violating the Missouri Merchandising Practices Act by promoting and selling Vioxx, which was pulled from the market eight years ago due to evidence it doubled users’ risk of suffering a heart attack or stroke.

When the U.S. Food and Drug Administration approved Vioxx as a painkiller in May 1999, Merck immediately began marketing Vioxx as a treatment for rheumatoid arthritis, despite the fact it wasn’t approved for this treatment until 2002. Companies are prohibited from marketing drugs for conditions that have not been approved by the FDA.

Merck removed Vioxx from the market in September 2004 and was charged by the Justice Department with violating marketing laws and making false statements about its cardiovascular safety to increase sales.

Earlier this year, Merck plead guilty to one misdemeanor count of violating marketing laws and agreed to pay $950 million to resolve complaints brought by 43 states and the District of Columbia. Missouri was among the states in that case, receiving $13.8 million from Merck.

However, Missouri was also involved in an 8-year-old class action lawsuit alleging consumer fraud, not marketing fraud.

Under the proposed Vioxx consumer fraud settlement, Vioxx consumers will have two options for reimbursement:

— A one-time cash payment of $180 for those who cannot provide proof of purchase.

— $90 for each month of Vioxx purchases, with proof of purchase.

The Vioxx settlement must be approved by the Jackson County Circuit Court before it becomes final and any payments can be made to Class Members.