This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

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

NEW YORK, Feb. 14, 2013 /PRNewswire/ -- Today Labaton Sucharow LLP, along with its co-counsel, announced that it reached a $473 million settlement 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®.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,433.61 +46.40 0.27%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs