The Five Dumbest Things on Wall Street This Week

Merck, Heal Thyself

1. Leaving Your Merck

As pharmaceutical giant Merck (MRK Quote) learned this week, sometimes defensive medicine is just a waste of time.

On Sept. 30, to refresh your memory, Merck pulled its blockbuster drug Vioxx from the market on the basis of evidence that the painkiller increased the risk of cardiac illness.

In the years leading up to the recall, Merck had publicly insisted that no link existed between Vioxx usage and increased risk of heart attacks. The about-face precipitated a 27% free-fall in the stock.

Sensing that more bad news was in the air, Merck issued a press release last Friday alerting investors that certain Merck documents related to pending Vioxx litigation -- including documents under court orders prohibiting disclosure -- had been made public.

"Past experience of other companies," said Merck, "suggests that documents will be presented out of context. ... As such, the documents, the surrounding events and the business practices of Merck may well be misinterpreted in any reporting."

Merck's shares fell slightly on the company's brief announcement, ending the day down 1%, and perhaps the company thought it had inoculated itself against the shock of additional bad news. ...