The Supreme Court on Tuesday agreed to hear Merck & Co.‘s challenge to a shareholder suit linked to litigation over the painkiller Vioxx. Company lawyers say the shareholder suit was filed outside the two-year statute of limitations and should not be permitted to go forward.
Last year, the 3rd U.S. Circuit Court of Appeals reversed a trial judge’s dismissal of the suit. U.S. District Judge Stanley Chesler of New Jersey had ruled that the investors had ample notice of alleged fraud involving Vioxx — through, among other things, scientific and press reports — and could have pursued a claim within a two-year window. The appeals court ruled 2-1 against Merck, driving lawyers for the drug maker to petition the Supreme Court for certiorari.
