NJ US Dist. Ct. Judge Cavanaugh Gives Gradone An ERISA Pleading "Roadmap" -- in Cobb

Two important opinions have been issued by federal District Court Judge Cavanaugh, overnight in New Jersey, in a pair of would be federal class actions. Both pertain to alleged violation-of-ERISA claims made, in two separate cases -- one against Schering-Plough, and one against Merck. At the heart of both, however, is the ENHANCE study results, and the alleged untimely disclosure of the same (background on the ERISA claims, here).

In the first case, against Schering-Plough, Judge Cavanaugh has allowed a "non-prejudicial" dismissal of the ERISA claims (in a case called Gradone), and given the plaintiffs, who are investors in Schering-Plough stock, through the employee benefit plans, 30 days to refile an amended complaint.

In the second case, he gave the Gradone plaintiffs a roadmap of how to do just that. In the Merck case, called Cobb, Judge Cavanaugh has ruled that -- if the plaintiffs prove what they've alleged -- a good ERISA claim could at least reach a jury. It is, in short, in the language of the law, a well-pleaded complaint. So, all the Gradone plaintiffs need do, is refile by October 1, 2009, and make all of the more-specific allegations that the Cobb plaintiffs originally made. Simple enough. [Here is the Cobb opinion, as a PDF file; and the Gradone opinion, also as a PDF file.]

I'll keep you posted, just as soon as the Gradone plaintiffs refile.