Scott + Scott, LLC Announces Updated Information on Pension Class Action Lawsuit Regarding Merck & Co

Business Wire, Nov 11, 2004

COLCHESTER, Conn. -- Lawsuit on Behalf of Current and Former Merck Employees/Plan Participants and Their Beneficiaries

Scott Scott, LLC (http://www.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 in the United States District Court for the District of New Jersey. If you wish to discuss your rights with an attorney, please call 800/404-7770 (EST) or 800-332-2259 (PST) or email (MerckERISALitigation@scott-scott.com or nrothstein@scott-scott.com).

The complaint alleges that defendants Merck & Co., Inc. and other Plan fiduciaries breached their fiduciary duties under ERISA (the Employee Retirement Income Security Act) 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. The price per share of Merck slid on Tuesday when the SEC announced its informal inquiry on Vioxx. The Company also received a subpoena from the Justice Department. CEO Raymond Gilmartin and FDA officials must testify before Congress on November 18, 2004. Finally, Moody's Investment Services lowered Merck's Aaa rating of its long-term debt down two levels to Aa2.

Merck withdrew Vioxx from the market on Sept. 30, 2004 because the drug purportedly significantly increased the risk of heart attacks and strokes in patients taking it longer than 18 months. After the drug had been withdrawn, the Wall Street Journal reported that internal company emails and memos showed that Merck was aware of the problems with Vioxx as early as March 2000, over 4 years before the drug was withdrawn. Also, earlier this week, the SEC and the Department of Justice announced that they were investigating whether Merck misled investors and federal regulators about the safety of Vioxx. Since Vioxx was withdrawn from the market, Merck's stock price has dropped over 40% and is currently trading at an 8 1/2 year low.

SCOTT SCOTT ACTIVE IN OTHER PENSION/ERISA CASES

Presently, Scott Scott, LLC is co-lead counsel in the Shell/Royal Dutch ERISA Litigation which is also pending in federal court in New Jersey. It is also investigating on behalf of plan participants or has filed suit on behalf of employees/plan participants against Marsh & McLennan (NYSE: MMC), which cut 3,000 jobs on Tuesday; St. Paul Travelers (NYSE: STA), which announced it had received subpoenas from three states' attorneys general on Tuesday; and Hartford Financial (NYSE: HIG), which also received a subpoena and is being investigated for potential insider trading by one of its executives. Additionally, other insurance sellers under investigation include American International Group (NYSE: AIG), Aon (NYSE: AOC), Willis (NYSE:WSH), Ace Ltd. (NYSE: ACE) and even late Monday, the U.S. Department of Labor said it was investigating Prudential Insurance (NYSE: PRU). 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 the firm. There are no costs associated with being a client/plan participant litigant with Scott Scott.

THE FIRM

Scott Scott, LLC is 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. Scott Scott, LLC devotes a good part of its practice to representing current and former employees who have lost significant portions of their retirement savings in their companies' 401(k) and/or employee stock ownership plans. 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). 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.