COLCHESTER, Conn., Dec. 9, 2004 (PRIMEZONE) -- Scott + Scott, LLC (e-mail MerckERISALitigation@scott-scott.com or nrothstein@scott-scott.com ), which has filed a class action lawsuit on behalf of participants and beneficiaries of the Merck & Co., Inc. (NYSE:MRK) Savings and Security Plan and the Employee Stock Purchase and Security Plan, states that Merck announced on Wednesday that it was lowering its profit forecasts for next year because of the withdrawal of Vioxx and the upcoming loss of patent protection for Zocor, the company's best-selling drug. The company said that 2005 earnings per share would be $2.42 to $2.52 below Wall Street expectations and a drop of up to 8 per cent from the $2.59 to $2.64 expected this year.
The lawsuit has been filed in the United States District Court for the District of New Jersey. If you wish to discuss your rights with a Scott + Scott attorney, please call 800-404-7770 (EST) or 800-332-2259 (PST) or e-mail as stated above. Employees who choose to support this litigation in protecting their individual interests in the plans as clients of Scott + Scott do so as part of a group of employees and can do this on a confidential basis and participate in the litigation at their own discretion. It is unlawful for Merck to take any retaliatory action against any employee who chooses to participate in the suit. You can visit our website at http://www.scott-scott.com .
The deteriorating outlook is based in large part on Merck's difficulties over Vioxx. Merck's stock price has plunged over 40% since the drug was pulled on Sept. 30, 2004. The Vioxx withdrawal has weighed heavily on the company, causing it to lose its AAA credit rating and prompting criminal and civil investigations, lawsuits, legal liability and congressional hearings. The lawsuit alleges that Merck and other plan fiduciaries breached their fiduciary duties and responsibilities by, among other things, failing to investigate the prudence and good sense of making large investments in Merck stock in these plans and by making misrepresentations about various matters such as Vioxx, one of the company's top-selling pharmaceutical products.
Scott + Scott, LLC Securities Update
While the Merck debacle remains center stage at this time, Scott + Scott, LLC is currently litigating or investigating on behalf of its clients current issues at such companies as STAR GAS PARTNERS (NYSE:SGU) and (NYSE:SGH), where there is an action on behalf of purchasers of the publicly traded securities. The CHIRON CORPORATION (NASDAQ:CHIR) MATTER charges defendants disseminated materially false and misleading statements regarding the Company's business and prospects and failed to disclose the following facts, which were known to each of the defendants during the Class Period but were concealed from Chiron's shareholders: KING PHARMACEUTICALS INC (NYSE:KG) stated Wednesday that it was restating its earnings for 2002, 2003 and for the first six months of 2004 to recognize expenses related to product returns. MYLAN LABORITORIES INC. (NYSE:MYL), which was supposed to take over the Tennessee-based KING, may pull out of the deal.
Yesterday, Scott + Scott, LLC was appointed co-lead counsel in the securities fraud action against NETFLIX INC (Nasdaq:NFLX). NAVISTAR INTERNATIONAL CORP (NYSE:NAV) delayed its quarterly earnings report because of an anticipated restatement while ELECTRONIC DATA SYSTEMS CORP (NYSE:EDS) stated that it will terminate a shareholder-rights plan. Such plans are usually used to block hostile takeover bids. Interestingly, DELPHI CORP (NYSE:DPH) has delayed its third-quarter filing and is conducting an internal review with PricewaterhouseCoopers which evolved from a $20 million payment from EDS in late 2001.The firm is also presently litigating ERISA/pension benefits cases on behalf of plan participants against such companies as ROYAL DUTCH/SHELL TRANSPORT (NYSE:RD) where it is co-lead counsel and MARSH and McLENNAN COMPANIES (NYSE:MMC).
Scott + Scott, LLC, a Connecticut-based law firm with offices in Chagrin Falls, Ohio and San Diego, California, is a law firm 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 (EST) or 800-332-2259 (PST). You can dial direct in California at 619-233-4565 or fax at 619/233-0508.