Merck & Co., Inc.
On November 29, 2011, the Honorable Stanley R. Chesler granted final approval of the Amended Stipulation and Agreement of Settlement (“Settlement Agreement”). The appeals deadline in this matter was December 29, 2011.
The Merck Co., Inc. ERISA Litigation was filed in the United States District Court for the District of New Jersey. The Consolidated Amended Complaint alleges that during the Class Period, Defendants breached their fiduciary duties to Plaintiffs and the Class members by:
• Failing to prudently and loyally manage the Plans and Plans’ assets and share material information with fellow fiduciaries
• Failing to provide complete and accurate information to participants and beneficiaries
• Failing to monitor fiduciaries
• Co-fiduciary liability
• and Knowing participation in a breach of fiduciary duty.
On February 9, 2009, the Court certified the following Class in this action:
Every person, other than Defendants:
1) who was a participant in, or beneficiary of, the Merck & Co., Inc. Employee Savings & Security Plan, the Merck & Co., Inc. Employee Stock Purchase & Savings Plan, the Merck Puerto Rico Employee Savings & Security Plan and the Merck-Medco Managed Care, LLC 401(k) Savings Plan (collectively, the “Plans”) at any time between October 1, 1998 and September 30, 2004; 2) whose Plan accounts invested in the Merck Common Stock Fund and/or Merck common stock; 3) who sustained a loss to his or her Plan account as a result of the investment in the Merck Common Stock Fund and/or Merck common stock; and 4) who has not executed a settlement agreement releasing these claims.
The Settlement provides for a payment of $49.5 million, net of expenses described in the Settlement Agreement, to the Plans for the benefit of the following Settlement Class:
All current and former participants and beneficiaries of the MSD Employee Savings & Security Plan (formerly known as the Merck & Co., Inc. Employee Savings & Security Plan), the MSD Employee Stock Purchase & Savings Plan (formerly known as the Merck & Co., Inc. Employee Stock Purchase and Savings Plan), the MSD Puerto Rico Employee Savings & Security Plan (formerly known as the Merck Puerto Rico Employee Savings & Security Plan), and the Plan formerly known as the Merck-Medco Managed Care LLC 401(k) Savings Plan (the “Medco Plan”) (collectively, the “Plans”), for whose individual accounts the Plans purchased and/or held shares of the Merck common stock fund between October 1, 1998, and September 30, 2004, inclusive.
The Court granted Final Approval of the settlement on November 29, 2011. It is our expectation that the distribution of settlement monies will be made to participant plan accounts in April 2012.
For additional information regarding the Settlement please visit: http://www.merckerisasettlement.com/.