$165 Million Settlement in Schering-Plough Securities Litigation Wins Final Approval

12/31/2009 - On December 31, 2009, the Honorable Katharine S. Hayden of the United States District Court for the District of New Jersey granted final approval to a proposed $165 million settlement in a securities class action against Schering-Plough Corp. (recently acquired by Merck & Co., Inc.). Barrack, Rodos & Bacine represented the lead plaintiff, the Florida State Board of Administration, who brought the case on behalf of purchasers of Schering-Plough stock during the period from May 9, 2000 through February 15, 2001. The lawsuit alleged that Schering-Plough failed to disclose serious and widespread manufacturing and quality deficiencies at multiple manufacturing sites that ultimately caused that Food and Drug Administration to withhold approval of an important new allergy medicine, known as Clarinex, that the company was seeking to market. When the market learned of the manufacturing deficiencies and that approval of Clarinex had been withheld, the market price of Schering-Plough stock immediately declined by 15 percent. Barrack, Rodos & Bacine tenaciously litigated this case for more than eight years. The settlement was the product of a lengthy mediation process and was reached after the parties had engaged in extensive fact and expert discovery, and while cross-motions for summary judgment were pending. In granting final approval, Judge Hayden stated that the settlement was reached through “plain old fashioned litigation that involved hard work and good judgment in ultimately achieving a negotiated resolution of substantial value to the class.”