Labaton Sucharow Secures $473 Million Settlement In Case Against Schering-Plough Corporation

       Labaton Sucharow Secures $473 Million Settlement In Case Against
                         Schering-Plough Corporation

PR Newswire

NEW YORK, Feb. 14, 2013

NEW YORK, Feb. 14, 2013 /PRNewswire/ --Today Labaton Sucharow LLP, along with
its co-counsel, announced that it reached a $473 millionsettlement in In re
Schering-Plough Corporation / ENHANCE Securities Litigation. The recovery is
the largest securities class action settlement ever against a pharmaceutical
company, among the top 25 securities class action settlements of all time, and
among the ten largest recoveries ever in a securities class action that did
not involve a defendant company restating its earnings. The case was set to
start trial on March 4, 2013 in federal court in New Jersey.

The allegations in the case center around the LDL ("bad") cholesterol lowering
drug product VYTORIN®, and a clinical trial known as ENHANCE. ENHANCE sought
to demonstrate that VYTORIN® was more effective than another cholesterol drug
product, ZOCOR®, in combating atherosclerosis (the build-up of plaque in
artery walls), as measured by the thickness of patients' carotid arteries.
All patients had completed their course of treatment by April 2006, but the
results were not released to the public until early 2008, shortly after the
United States Congress began investigations into the delay. The ENHANCE
results showed that VYTORIN® was no better than ZOCOR® in changing the
thickness of patients' arteries, despite the fact that VYTORIN® did lower
patients' cholesterol significantly more than ZOCOR®.

Schering-Plough Corporation ("Schering") co-marketed VYTORIN® with Merck &
Co., Inc. ("Merck"), and the two companies co-sponsored the ENHANCE trial.
The plaintiffs in the case alleged that Schering learned that the ENHANCE
trial was a failure more than a year before the results were publicly
disclosed, but that Schering withheld that information from investors. During
that time, Schering and several of its executives are alleged to have made a
series of material misrepresentations and omissions concerning the ENHANCE
trial and the commercial viability of VYTORIN®.

"We arepleased to have secured this significant recovery for investors," said
Labaton Sucharow partnerChristopher McDonald, co-lead counsel for the Class.
"The settlement is even more gratifying because it underscores the value of
private civil litigation to protect shareholder rights. Multiple federal and
state agencies investigated the matter, but our case is what yielded a
significant financial benefit for Schering's investors."

In November 2009, Schering and Merck merged, with the surviving entity keeping
the Merck name. The settlement inures to the benefit of legacy Schering
investors who purchased Schering securities between January 3, 2007 and March
28, 2008.

Labaton Sucharow represents co-lead plaintiff and class representative the
Massachusetts Pension Reserves Investment Management Board. The other co-lead
plaintiffs in the Schering action are the Arkansas Teacher Retirement System,
the Public Employees' Retirement System of Mississippi,andthe Louisiana
Municipal Police Employees' Retirement System.

The defendants include Schering, certain of Schering's former directors and
officers, the underwriters that participated in public offerings of Schering
stock in August 2007, and Merck/Schering-Plough Pharmaceuticals, the joint
venture formed by Schering and Merck to market VYTORIN® and another
anti-cholesterol drug product, ZETIA®. Both VYTORIN® and ZETIA® contain the
drug ezetimibe. VYTORIN® also contains the drug simvastatin, which is the
active ingredient in ZOCOR®. By comparing VYTORIN® and ZOCOR®, the ENHANCE
trial sought to determine whether the additional cholesterol lowering obtained
with ezetimibe would result in a biologic benefit (i.e., a reduced
atherosclerotic burden) to patients.

About Labaton Sucharow LLP
Labaton Sucharow, one of the nation's premier law firms, celebrates 50 years
of championing for investor and consumer rights, seeking recovery of losses
and the adoption of necessary corporate governance reforms to protect
institutional investors, businesses and consumers in complex securities,
antitrust & competition, M&A, derivative, corporate governance/shareholder
rights litigations. The Firm's litigation expertise is matched with its
sophisticated in-house team of investigators, financial analysts and forensic
accountants with federal and state law enforcement experience to provide
unparalleled representation to our clients. The Firm also brings its
accomplished litigation experience to the nation's first Whistleblower
Representation Practice that exclusively focuses on protecting and advocating
for whistleblowers who report possible violations of the federal securities
laws. Labaton Sucharow has been recognized for its excellence by the courts
and peers, and is consistently ranked in leading industry publications and
resource guides. Offices are located in New York and Wilmington, DE.

CONTACT:

Jennifer S. Bankston
212-907-0659
jbankston@labaton.com

SOURCE Labaton Sucharow LLP
 
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