Schering-Plough Shareholders Win A Round In Court
7 CommentsBy Ed Silverman // June 23rd, 2010 // 7:58 am
Former Schering-Plough ceo Fred Hassan and several former colleagues and board members are a step closer to providing sworn testimony about the notorious Enhance clinical trial for Vytorin, which raised questions about the effectiveness of the widely advertised cholesterol pill (back story). A federal judge this week denied yet another a bid to dismiss a shareholder lawsuit, which accused the group of playing shenanigans with the results.
At issue, is whether Schering-Plough and Merck (which were partners) handled the release of the trial data properly, given a two-year delay, a brief change in the primary endpoint without consulting the lead investigator and huge stock sales by some Schering-Plough execs. The trial, by the way, found Vytorin wasn’t any better at reducing arterial plaque in the carotid artery compared with Zocor, and even found a statistically insignificant buildup. Former Schering-Plough execs have repeatedly argued they knew nothing of the results until after the behind-the-scenes controversy was disclosed (see here).
In his opinion, US District Court Judge Dennis Cavanaugh took the lawyers for the former execs and board members to task for their latest attempt to have the case dismissed, calling it a ‘classic attempt at a second bite at the apple,’ and simply a vehicle to “rehash arguments which have already been briefed by (the defendants) and considered and decided by the court.” This is very much a procedural step, but an important one. The upshot is that Hassan and friends will likely soon find themselves being deposed about those controversial events, which were widely followed as a lesson in how executives must manage the release of important clinical trials, among other things.
Hat tip to Shearlings Got Plowed
Condor
Thanks for the hat-tip, Kemo Sabe!
The opinion is also remarkable for the clarity of Judge Cavanaugh’s annoyance at Hassan, et al. — if asked, he might have awarded the plaintiffs their attorneys’ fees (expended addressing the spurious motion), here.
Namaste, to all of good will.
Former SP
It’s about time!!!!!
SP Guy
Yeah baby!!
SP 2
Only time will tell whether justice will be served. Given what I’ve seen in the pharma industry, I seriously doubt it!
Condor
Well — for the second time in as many days, Judge Cavanaugh has issued an opinion essentially chiding New Merck/Schering-Plough’s lawyers for repetitive defense tactics. This time, it was in the ERISA Enhance-related putative federal class action cases.
So — even though two rulings does not “a trend, make” — were I representing Merck and legacy Schering-Plough, I’d be very careful not to test the patience, and tax the resources of the federal courts, here. Otherwise zealous defense of litigation becomes abusive, or “vexatious” with the mere stroke of a judge’s pen. Counsel should keep that top of mind, from now on. And Judge Cavanaugh is brandishing his pen, erh keyboard, again this evening.
Namaste
These two opinions are judicial tea leaves, and Merck would do well to read for context, as well as content, here.
Truth
Can you trust this man? I don’t think so. I say depose them all. It will be very interesting. Eventually, someone will break through and tell the truth, the whole truth, and nothing but the truth. Unfortunately, it may have to wait until they have to swear on the bible before testifying in court. Of course, then they can always take the 5th, over and over and over again. Or they don’t tell the truth and then they’ll face potential perjury charges. Here’s hoping that the scoundrels are really brought to justice.
Justice
Justice would be to ship him off to Islamabad via a one-way ticket!!