Scheduling Order Entered, Setting Preliminary Motion Practice, In Newest Institutional Holders' "Opt-Out" ENHANCE-Era Federal Securities Fraud Suits

Shortly before Christmas, we mentioned that several of the largest, long term owners of legacy Schering-Plough had opted to file suit on their own behalf in New Jersey federal District Court, rather than accept their shares -- of the $688 million settlement fund allotted to them.

Until last Friday, not much of note had happened on those federal securities "opt-out" suits. But now the very-able Judge Freda Wolfson has set a series of deadlines, for preliminary motions practice related to the cases.

There is no doubt in my mind that these suits will survive all the motions to dismiss at this stage -- and so, some time in August of 2014, we should see Merck's answer to the complaints. That is, assuming Mr. Frazier doesn't just decide to settle them. My own view is that he, as the heir to the misdeeds and inattention to critical detail of Fast Fred, Tom, Bob, Brent, Tom and Carrie -- has very little chance of escaping this mess without significant additional payments here. I think so, because the new complaints are essentially identical to the ones upon which Merck and its insurers paid $688 million, in the summer of 2013. That payment exhausted all of the legacy Schering-Plough coverage. And all of Merck's.

Even so, these very large holders are -- at law -- entitled to take the money from Merck, since it is essentially old legacy Schering Plough, just traveling under a new passport. So, my guess is that these suits settle in the high teens of millions of dollars, for each of these institutional complainants. That's my guess. The only question is when (which quarter; which year) not whether. We will watch it:

. . . .Defendants [Merck and the legacy Schering-Plough directors and select former officers, personally] shall have until April 24, 2014 to serve a motion to dismiss each of the complaints; Plaintiffs shall have until June 23, 2014 to serve any opposition to Defendants' motions to dismiss; that Defendants shall have until August 7, 2014 to serve any reply in further support of their motions to dismiss; that all motion papers shall then be filed simultaneously on August 7, 2014.

Signed by Judge Freda L. Wolfson on March 7, 2014. . . .

We will keep you posted -- but Fred and Tom and Carrie may yet again be deposed, if this one doesn't settle. How the worm turns.