Fosamax Product Liability
1/11/2009
According to an August 14, 2008 "MERCK & CO: Faces 655 Product Liability CasesOver Fosamax Drug", published by Lloyds Corporate LitigationReporter:
Merck & Co., Inc., as of June 30,2008, faced approximately 655 product liability cases involving Fosamaxdrug, including about 1,120 plaintiff groups, which had been filed and werepending against the Company in either federal or state court.
As background, a Fosamaxmultidistrict litigation (the Fosamax MDL) was created by the Judicial Panel onMultidistrict Litigation (JPML) in August 2006, and assigned to Judge JohnKeenan in the United States District Court for the Southern District of NewYork (SDNY).
By operation of the Fosamax MDL,Judge Keenan is presiding over the coordinated pre-trial proceedings for allFosamax lawsuits that have been filed in the federal court system.
Additional Fosamax lawsuits have beenfiled against Merck in New Jersey state court, as well as other state courtsystems around the country.
To date, most of these productliability cases filed against Merck allege the drug company failed to warnsufficiently that its osteoporosis drug Fosamax can cause bisphosphonates-induced osteonecrosis of the jaw (ONJ).
As with the Vioxx litigation, Merckis vowing to fully defend itself in the Fosamax litigation. According tothe August 14 Lloyds Corporate Litigation Reporter article:
As of Dec. 31, 2007, the Company hada remaining reserve of approximately US$27 million solely for its future legaldefense costs for the Fosamax Litigation. During the first quarter of 2008, theCompany spent approximately US$7 million and added US$40 million to itsreserve. In the second quarter, the Company spent approximately US$10 million.
As of June 30, 2008, the Company hada reserve of approximately US$50 million.
We will continue to monitor the Fosamax litigation for developments inthe federal court MDL as well as the in the various state courts where Fosamaxlawsuits have been filed.
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