Merck & Co. (NYSE:MRK) and Schering-Plough Corp. (NYSE:SGP) have agreed to
settle civil claims related to their jointly marketed cholesterol drugs. The companies were accused of delaying the release of unfavorable test results on Vytorin and Zetia, blockbuster drugs marketed through a Merck-Schering-Plough joint venture. On Wednesday, the partners settled with attorneys general in 35 states, agreeing to reimburse the states $5.4 million for investigation costs, but not admitting any misconduct or liability.
The settlement comes as
Merck works to complete its $41.1 billion cash-and-stock agreement to buy Schering-Plough. It's unlikely the lawsuit would have delayed that blockbuster transaction. The two companies were co-defendants, after all, and were likely working together to close the case. But in the turbulent world of M&A, where ferrying deals to close is taking longer and sometimes not happening at all, settling a lawsuit involving a majority of state attorneys general is, if nothing else, one less thing to worry about.
- Suzanne Stevens
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