Last week, the plaintiffs' lawyers filed an amended and now consolidated putative class action ERISA complaint against CEO Hassan, CFO Bertolini, the head of HR (Cheeley), the administrator of various plans (Sweeney), and the Board of Directors, as well as Schering-Plough itself -- expanding upon the theory that these people violated their fiduciary duties under ERISA -- when each allowed, or recommended as a "prudent retirement investment" (to the rank-and-file Schering employees, and retirees) sales of Schering stock to the ERISA plan participants at $25, $26, $27, $28, $29, $30, $31 and $32-plus prices per share -- throughout 2006, 2007 and into early 2008.
The key question to be decided, as a factual matter, will be when did all or any of these officers and directors know that ENHANCE would bring "no good news". In that sense, the Gradone ERISA case does not depart from the theories advanced in the various other putative class action suits, so I'll not rehash it, paragraph by paragraph, here. For those keeping score at home, though, here is a link to the full 60-page PDF file, from the U.S. District Court in Newark.
Stay tuned here for Schering and Merck Q3 earnings news, as the same breaks.