COLCHESTER, Conn., Dec. 15, 2004 (PRIMEZONE) -- Scott + Scott, LLC (e-mail MerckERISALitigation@scott-scott.com or nrothstein@scott-scott.com), 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. The lawsuit has been filed to recover losses that current and former Merck employees have suffered in their retirement accounts. Merck plans to slash 5,100 jobs at the Company by year end and plans to take other drastic measures to cut costs at the company, a move that has many employee plaintiffs concerned. The retirement losses and job cuts are due in large part to Merck's deteriorating outlook following the recall of Vioxx, one of Merck's best-selling drugs. Scott + Scott's investigation of this case is ongoing and the firm expects that there may be exposure in other ways as well.
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 can do so as clients of Scott + Scott, LLC. As part of a group, any employee 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 . To date, the union at this company has taken no position as to whether individuals should pursue their individual rights or not. Unionized workers join as an individual to direct the litigation or merely follow it. All workers are permitted (except for defendants and their families) to participate to the extent that they choose. Lead plaintiffs are chosen by the Court and many employee plaintiffs have already volunteered.
Merck said it will have eliminated 5,100 positions by year end, 700 more than previously planned. The job cuts are expected to save $300 million a year starting in 2005. Merck's cost-cutting program is expected to amount to more than $3 billion through 2008, which is of little concern to those plaintiffs who are now unemployed.
Merck has lost about half its share value in the past two years. The deteriorating outlook of Merck is based in large part on Merck's difficulties over Vioxx. 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.
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.