Texas State Attorney General files lawsuit against Merck & Co., Inc.
By Ramsay Crooks
Published on July 22, 2005
State Attorney General Greg Abbott claims that Merck, one of the nation's largest pharmaceutical companies, suppressed information that might have undermined the purported safety of Vioxx. He contends that Merck aggressively lobbied to have Vioxx listed on Texas's list of medicine covered by Medicaid, despite knowledge about possibly harmful side effects. The lawsuit will seek to recover damages in excess of $168 million.
Merck recalled Vioxx in September of 2004, when research studies showed that the prescription medication doubled the risk of heart attack and stroke in patients who used it for at least 18 months. Merck maintains that the company acted responsibly and says it will defend itself vigorously.
The State Attorney General's office alleges that Merck violated the Texas Medicaid Fraud Prevention Act. According to Abbott, approximately $56 million in Vioxx prescriptions were filled by Texas pharmacists under the Medicaid program. Under Texas law, damages can be tripled for acts of fraud, and additional civil penalties could push the figure upwards of $250 million.
Although more than 2,400 lawsuits have been filed against Merck since the Vioxx recall, Texas is the first state to sue the pharmaceutical company.
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