COLCHESTER, Conn., Nov. 3, 2004 (PRIMEZONE) -- Scott + Scott, LLC (http://www.scott-scott.com ) has filed a class action lawsuit today in the United States District Court for the District of New Jersey on behalf of participants and beneficiaries of the Merck & Co., Inc. (NYSE:MRK) Employee Stock Purchase and Savings Plan and the Merck & Co., Inc. Employee Savings and Security Plan (the "Plans"). For more information, please e-mail: (MerckERISALitigation@scott-scott.com and nrothstein@scott-scott.com) or by calling 800-404-7770 (EDT) or 800-332-2259 (PDT). You can dial direct in California at 619-233-4565. Scott + Scott, LLC is located at 108 Norwich Avenue, Colchester, CT 06415; phone: 860/537-3818; fax: 860/537-4432. The firm is presently co-lead counsel in the Shell/Royal Dutch ERISA Litigation.
The complaint alleges that defendants Merck & Co., Inc.; its Employee Benefits Policy Committee, and certain of its officers and directors breached their duties under ERISA by, among other things: (1) failing to properly manage the Plans' assets by imprudently investing a significant amount of the Plans' assets in Merck stock; (2) failing to provide complete and accurate information to participants and beneficiaries; (3) failing to monitor those defendants who were charged with managing the Plans and their assets; and (4) failing to avoid conflicts of interest with respect to the Plans.
Specifically, Plaintiff alleges that the Defendants, responsible for the investment of the assets of the Plans, breached their fiduciary duties to Plaintiff in violation of ERISA (Employee Retirement Income Security Act) by failing to prudently and loyally manage the Plans' investment in Merck stock. Next, Plaintiff alleges that Defendants who communicated with participants regarding the Plans' assets, or had a duty to do so, failed to provide participants with complete and accurate information regarding Merck stock sufficient to advise participants of the true risks of investing their retirement savings in Merck stock. Plaintiff also alleges that Defendants, responsible for the selection, removal, and, thus, monitoring of the Plans' fiduciaries, failed to properly monitor the performance of their fiduciary appointees and remove and replace those people whose performance was inadequate. Finally, Plaintiff alleges that Defendants breached their duties and responsibilities to avoid conflicts of interest and serve the interests of the participants in and beneficiaries of the Plans with undivided loyalty.
As a result of Defendants' fiduciary breaches the Plans have suffered substantial losses, resulting in the depletion of hundreds of millions of dollars of the retirement savings and anticipated retirement income of the Plans' participants. Under ERISA, the breaching fiduciaries are obligated to restore to the Plans the losses resulting from their fiduciary breaches. According to the Company's 2003 11-Ks, the Plans held $1,197,321,319 in Merck Common Stock as of December 31, 2003, accounting for approximately 39% of the total assets held by the Plans and $1,651,008,624 in Merck Stock as of December 31, 2002, or about 53% of the Plans' total assets.
If you are a member of one of the Plans and wish to discuss this announcement, are interested in actively participating in this litigation with others, and/or have information relevant to the ongoing investigation, please contact:
Scott + Scott, LLC, a Connecticut-based law firm with offices in Ohio and California, with a national practice and reputation. Scott + Scott dedicates itself to client communication and satisfaction. The firm is currently litigating major securities, antitrust and employee retirement plan cases throughout the United States and represents pension funds, charities, foundations, individuals and other entities worldwide -- in both class and non-class cases. Please visit our website at http://www.scott-scott.com to learn more about the firm, its practice and other cases. If you wish to discuss this action with an attorney or have any questions concerning this notice, your rights or any matter within our expertise, please contact attorney Neil Rothstein at nrothstein@scott-scott.com or by calling 800-404-7770 (EDT) or 800-332-2259 (PDT). You can dial direct in California at 619-233-4565. Scott + Scott, LLC is located at 108 Norwich Avenue, Colchester, CT 06415; phone: 860/537-3818; fax: 860/537-4432.
LAW FIRM DEDICATION
Scott + Scott, LLC, which prides itself on its dedication to the class and its tenacity for the interest of the class, recently won an important decision in the Halliburton Securities Litigation (NYSE:HAL) case on behalf of its Lead Plaintiff halting a settlement that was deemed inadequate by the Court and completed secretly behind its lead plaintiff's back (a non-profit charitable organization). Scott + Scott, LLC fought this battle to successfully have final approval denied. This unusual procedural victory took over a year and a half: http://www.washingtonpost.com/wp-dyn/articles/A13102-2004Sep10.html or http://www.taipeitimes.com/News/biz/archives/2004/09/12/2003202628
OTHER SCOTT + SCOTT NEWS
INSURANCE SCANDALS: Scott + Scott is also currently working on matters involving the recent insurance scandals including THE HARTFORD (NYSE:HIG), AMERICAN INTERNATIONAL GROUP (NYSE:AIG), Aon CORP. (NYSE:AOC), ACE, Ltd. (NYSE:ACE), Marsh & McLennan (NYSE:MMC) and others.
EMC Insurance Group, Inc.(NYSE:EMCI) ("EMCI" or the "Company") announced that it planned to restate its financial results for the third quarter of 2004 and the previous nine months, from January 30, 2004 to September 30, 2004. The restatement was the result of incorrect income recognition during the third quarter of 2004, resulting in a reduction of $441,000 in the previously reported third quarter investment income and a reduction of $418,000 in the previously reported third quarter net income. The overstatement was caused by a manual input error on the yield of one of EMC's municipal securities. This input error led EMC to overstate its accrued interest income on the municipal security, and, in turn, led to the incorrect income recognition during the third quarter of 2004. Other securities matters pending or under investigation include Stillwater Mining (NYSE: SWC), Converium Holding AG (NYSE:CHR), Star Gas (NYSE: SGU and SHG), IVAX (AMES: IVX), Chiron Corp. (NASDAQ:CHIR), SOURCECORP (NASDAQ: SRCP) and more. Further, Scott + Scott, LLC is also currently working on other ERISA cases including one against the St. Paul Travelers Companies, Inc. (NYSE:STA ).
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.