Judge rules health plans can sue over Vioxx prescription costs
NJ judge allows labor union health plan’s class-action lawsuit to proceed against Merck
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Superior Court Judge Carol E. Higbee in Atlantic City, NJ, granted a motion filed by the International Union of Operating Engineers Local 68 Welfare Fund. The motion allows their class-action lawsuit to proceed under the New Jersey Consumer Fraud Act. The union sued Merck & Co. in early 2003, alleging that its health plan would not have covered Vioxx prescriptions for its members, except that Merck deceived them about the risks of Vioxx, which cost several times more than traditional anti-inflammatory medicines.
A large percentage of Vioxx prescriptions were paid for by third parties like the union’s health plan. Vioxx had peak sales of more than $2.5 billion annually. Merck & Co. recalled Vioxx in September 2004, after it was linked to serious cardiovascular events, such as strokes, heart attacks and sudden cardiac death, in many patients.
Under the New Jersey Consumer Fraud Act, the union and other parties to the suit may be eligible for triple damages, besides reimbursement of the billions they paid for the prescriptions themselves.
Source: Linda A. Johnson, “Judge Oks health plans’ suit against Merck,” Associated Press, July 29, 2005.

