COLCHESTER, Conn., March 4, 2005 (PRIMEZONE) -- Scott + Scott, LLC (nrothstein@scott-scott.com or MerckERISALitigation@scott-scott.com ), which 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, update this case and other recent filings in the pharmaceutical industry. The Merck lawsuit (non-employee shareholders are represented in a separate action) has been filed to recover losses that current and former Merck employees have suffered in their retirement accounts. Scott + Scott's investigation of this case is ongoing and the firm expects that there may be exposure in various ways.
This lawsuit was filed in the United States District Court for the District of New Jersey. While other such lawsuits were filed in Louisiana and other part of the U.S., a panel of federal judges have consolidated and moved all such cases to New Jersey before District Judge Stanley Chesler. 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 .
On March 3, 2005, Merck announced that CEO Raymond Gilmartin would be entitled to a 2004 pay bonus of $1.375 million. Three other top Merck executives would get combined bonuses totaling about $1.7 million.
Other pharmaceutical class actions recently filed include Elan Pharmaceutical (NYSE:ELN) whose shares plunged 70% when it pulled its drug, Tysabri, used for multiple sclerosis, when one patient died after taking it and another became ill. The class period in this case is for purchasers of this security from February 18, 2004 to February 25, 2005. Its partner in this drug, Biogen Idec (Nasdaq:BIIB) watched its shares fall 42.6% as its drug Avonex, which is marketed to be taken with Tysabri, was part of the two drug treatment. But Biogen insiders reaped millions in cash bonuses and stock sales shortly before the company informed regulators of the safety concern. William Rasteter, the Chief Officer made a profit of $7.45 million dollars while director Robert Pangia made over $950,000. The class period for purchasers of Biogen Idec is from February 18, 2004 to February 25, 2005.
Cases have been filed against Bradley Pharmaceuticals (NYSE:BDY) as the SEC began an informal investigation into the company's documents as to revenue recognition and capitalization of certain payments. Upon this news, which was the second time Bradley had gotten it but failed to disclose it the first time, the stock dropped 25%. The class period for purchasers is February 8, 2004 to February 25, 2005. A class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Axonyx, Inc. (Nasdaq:AXYX) common stock during the period between June 26, 2003 and February 4, 2005 . The complaint alleges that, during the Class Period, defendants issued false and misleading statements regarding the clinical trials for the Company's drug Phenserine, which is used for the treatment of Alzheimer's. On February 7, 2005, Axonyx announced that, despite all of its prior positive statements about Phenserine's clinical trials, Phenserine did not achieve significant efficacy in Phase III Alzheimer's Disease trial. Upon this news, shares of Axonyx common stock fell $3.04 per share, or over 60%, to close at $1.81 per share. Axonyx's stock price traded at inflated levels during the Class Period (a high as $8.29 on April 23, 2004) whereby the Company's top officers and directors sold more than $2.2 million worth of their own shares.
Scott + Scott, 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. 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. Scott + Scott dedicates itself to client communication and satisfaction. 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.
Scott + Scott, LLC is based at 108 Norwich Avenue, Colchester, CT 06415; phone: 860/537-3818; fax: 860/537-4432. This release is issued in accordance with the applicable U.S. federal law.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.