Merck solves Vioxx class action, will pay $830 million
million will be recorded as a charge in Q4 2015.
Under the agreement, Merck will pay $830 million to resolve the settlement class members’ claims, plus an additional amount for approved attorneys’ fees and expenses.
After available funds under certain insurance policies, Merck’s cash payment for the settlement and fees will be approximately $680 million, for which the company will record a charge in the fourth quarter of 2015, which will be excluded from non-GAAP results. The agreement is subject to court approval.
The settlement does not constitute any admission by Merck or any of the individual defendants of any liability or wrongdoing.
Merck still faces previously disclosed individual securities lawsuits related to Vioxx. ■