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Bernstein Liebhard Liftshitz, LLP
Home » Featured Cases » Vioxx Health Fund Litigation
Health-Fund Actions Against Merck on Behalf of Union Health and Welfare Funds
In August 2008, Bernstein Liebhard filed third-party payer lawsuits against Merck (NYSE:MRK) in state court in Atlantic City, New Jersey on behalf of the New York City Police Department, Detectives Endowment Association, Inc.’s (www.nycdetectives.org) Health & Welfare Fund and Retirees Health and Welfare Fund, and on behalf of the Ohio Carpenters’ Health Fund (www.ohiocarpenters.com), to recover monies the self-insured funds paid for Vioxx during the period from 1999 to 2004. The complaint alleges, among other things, that Merck violated the New Jersey Consumer Fraud Act in the way it marketed and sold Vioxx. The NJ Consumer Fraud Act provides for recovery of treble damages and an award of attorneys’ fees and costs.
The lawsuits follow the September 2007 New Jersey Supreme Court’s de-certification of a national class action on behalf of all third party payer self-insureds. BL&L Partner Eric Chaffin, who heads up the firm's litigation on behalf of health and welfare funds stated, "Self-insured funds spend hundreds of millions of dollars on pharmaceutical drugs for members and their families. The funds and their members suffer losses when pharmaceutical companies misrepresent the safety and efficacy of drugs like Vioxx. I have heard from some union members that as high as 80 to 90% percent of their hourly pay raises under new contracts go toward paying for rising health care and pharmaceutical costs. Funds are more frequently pursuing third party payer litigation to recoup losses and alleviate the health care cost burdens on their members."
For more information about the lawsuits or Bernstein Liebhard’s work on behalf of unions, please contact Partner Eric Chaffin at chaffin@bernlieb.com.
