Merck to pay at least $21.8 million to settle Vioxx lawsuits in Canada

Eight years after more than 1,000 Canadians launched a class action lawsuit claiming Vioxx boosted the risk of cardiac problems, pharmaceutical giant Merck has agreed to pay between $21.8 and $36.8 million to
settle the case. Merck maintains it did no wrong.






 Until Merck pulled Vioxx from drugstore shelves, Canadians with rheumatoid arthritis flocked to it to ease their suffering since it was approved for use in 1999. But research in 2004 suggested that continuous use of the drug increased the risk of serious heart attacks and strokes – side effects that Health Canada knew about by 2002, according to its website. Merck paid $4.85 billion to settle Vioxx lawsuits in the U.S. – more than 130 times the maximum amount it will pay here. Although the payment is a fraction of what Americans received, it’s a “good” result for a pharmaceutical case and one of the largest pharmaceutical settlements in Canadian history, said Siskinds LLP lawyer Matt Baer, who worked on the case. “It was a hotly contested litigation,” Baer said. “It’s not an unusually long time for this type of case.” Not only did the lawyers have to get approval to file a class action suit (Merck argued that because everyone’s health is different, the lawsuits should have been separate), but there were also 18 different law firms working on the case. One firm is Saskatchewan did not cooperate, Baer said, which prolonged the lawsuit. If the case continued in court, the complainants might have ended up with nothing like the Australians who lost an appeal in a similar suit, Baer said. The Americans received more money because of the way their health care system works, he explained – the settlements would have covered hospital bills as well. Their legal system also allows for much higher damage awards. The settlement, which has not yet been approved in court, includes about $10 million in legal fees and costs. Individuals who experienced cardiac problems after prolonged use of the drug – or their spouses and children – could be eligible for their portion of the money.