Vioxx Maker to Pay $4.85 Billion Settlement

By Sophia Brink

Published on November 09, 2007

Merck & Co. had been facing more than 26,000 separate lawsuits representing about 47,000 plaintiffs. The $4.85 billion settlement is expected to resolve 95 percent of these claims. For the agreement to become valid, 85 percent of the plaintiffs must agree to drop their cases.

According to the settlement, an amount will be placed in a fund from which claimants will be compensated. Individual compensation will depend on a number of factors, including the severity of injuries sustained. Claimants must meet certain requirements to qualify for compensation. They must provide proof that they took Vioxx within two weeks of developing their injuries.

The $4.85 billion settlement comes after years of legal battle since Merck voluntarily recalled Vioxx from the market Sept. 30, 2004. The first Vioxx trial took place in 2005. The plaintiff, the widow of a Vioxx user who died nearly four years prior, was awarded $253.4 million by a Texas jury. During the next two years, Merck would be involved in at least 14 different lawsuits, winning over half of them.

The agreement is believed by many to be the largest drug settlement ever. According to Merck, however, the settlement does not mean the company is admitting fault.

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