Class Action Lawsuit Filed Against Merck & Co., Inc. for Securities Violations
On March 25, 2025, The Schall Law Firm announced that it had filed a class action lawsuit against Merck & Co., Inc. (Merck or the Company) in the United States District Court for the District of New Jersey. The lawsuit alleges that Merck violated ยงยง10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission (SEC).
Allegations Against Merck
The complaint asserts that Merck made false and misleading statements and failed to disclose material information during the Class Period, which was from February 3, 2022, to February 3, 2025. Specifically, the lawsuit alleges that Merck misrepresented the safety and efficacy of its drug, Zontivity, which is used to prevent cardiovascular events in patients with peripheral arterial disease.
Background of Zontivity
Zontivity was approved by the U.S. Food and Drug Administration (FDA) in 2011 for the reduction of thrombotic cardiovascular events in patients with peripheral arterial disease and at high cardiovascular risk. Merck promoted Zontivity as having a lower risk of major bleeding compared to other drugs in its class.
The Alleged Misrepresentations
The lawsuit alleges that Merck knew, or should have known, that Zontivity was not as safe as it had represented. Specifically, the complaint alleges that Merck failed to disclose that Zontivity carried a higher risk of major cardiovascular events and that the drug’s benefits did not outweigh its risks. The lawsuit also alleges that Merck downplayed the risks associated with Zontivity in order to maintain sales and profitability.
Impact on Merck’s Stock Price
Following the filing of the lawsuit, Merck’s stock price declined significantly. On March 25, 2025, the Company’s stock closed at $71.39 per share, down from a high of $74.72 per share reached earlier in the day. The stock continued to decline in the following days, reaching a low of $68.32 per share on March 29, 2025.
Impact on Individual Investors
Individual investors who purchased Merck’s securities during the Class Period may be able to recover their losses through the class action lawsuit. The Schall Law Firm is encouraging investors to contact the firm before April 14, 2025, to discuss their legal rights.
Impact on the Pharmaceutical Industry
The lawsuit against Merck is a reminder of the importance of transparency and accuracy in the pharmaceutical industry. Companies that make false or misleading statements about the safety and efficacy of their drugs can face significant financial and reputational damages. This case may also lead to increased scrutiny of the pharmaceutical industry and its regulatory agencies.
Conclusion
The filing of a class action lawsuit against Merck & Co., Inc. for securities violations related to its drug Zontivity is a significant development in the pharmaceutical industry. The lawsuit alleges that Merck made false and misleading statements about the safety and efficacy of Zontivity, failing to disclose material information during the Class Period. The impact of this lawsuit on Merck’s stock price and the pharmaceutical industry as a whole cannot be ignored. Individual investors who purchased Merck’s securities during the Class Period may be able to recover their losses through the class action lawsuit. The case serves as a reminder of the importance of transparency and accuracy in the pharmaceutical industry and the consequences of failing to meet these standards.
- Merck & Co., Inc. (NYSE: MRK) filed a class action lawsuit against for securities violations related to its drug Zontivity.
- The lawsuit alleges that Merck made false and misleading statements about the safety and efficacy of Zontivity, failing to disclose material information during the Class Period.
- Individual investors who purchased Merck’s securities during the Class Period may be able to recover their losses through the class action lawsuit.
- The impact of this lawsuit on Merck’s stock price and the pharmaceutical industry as a whole cannot be ignored.
