The long-standing federal putative class action, called Gradone v. Schering-Plough, et al., alleges violations of various ERISA-contemplated fiduciary duties -- by numerous former Schering-Plough officers -- all in the wake of the delayed disclosure of the ENHANCE trial results in late 2007, and early 2008. We would expect that the details of the settlement will be disclosed once Merck's independent board committee votes to approve it -- perhaps even by the filing of the third quarter SEC Form 10-Q, in mid-November.
You may also sense some deja vu here -- recalling that just about three weeks ago, Merck's lawyers filed a largely- similar letter -- advising the court of another ENHANCE-era legacy Schering-Plough settlement agreement in principle -- suggesting a compromise had been crafted in the Cain v. Hassan, et al. derivative action, on the eve of sworn-depositions. It would seem that the then-imminent "Halloween spectre" -- of officers and directors swearing under oath about those events have led to a settlement. We will report the details of both, as they become available. From the overnight letter (as a small PDF file) filed in the federal District Court in Newark, New Jersey, then:
. . . .We write on behalf of all parties to report that. . . the parties reached an agreement in principle to settle the above referenced matter. . . . We hope to be able to submit that [formal] motion within two months. . . .
Do stay tuned -- as this one will be a running joke: What will ultimately be the aggregate monetary damages/settlements tally, on Fred Hassan's inartful disclosure practices, from just 2004 through 2009?
It is already well north of $200 million, in legal fees paid and agreed settlements.
1 comment:
Let's not forget there's his and his cronies compensation to leave the new Merck after the merger!
And all the layoffs of predominantly S/P staff~
Just sayin'
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