New York Pension Fund (2nd largest in country) Sues Merck Over Vioxx

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The pension fund of New York State filed suit in federal court accusing Merck & Company of misleading shareholders about the safety of its pain reliever, Vioxx, which has been withdrawn from the market.

The lawsuit asserts that the pension fund lost about $171 million on Sept. 30 when Merck, citing the drug's heart risks, halted sales of Vioxx worldwide. On that day, the price of a share of Merck stock plummeted 27 percent, and has continued to slide.

The suit appears to be the first by a pension fund against Merck. Although some 15 lawsuits have been filed accusing Merck of misleading shareholders, according to a Merck spokeswoman, Joan Wainwright, this appears to be the first filed by a pension fund. She said Merck had not seen Mr. Hevesi's lawsuit and so she could not comment on it. Several hundred personal injury lawsuit have also been filed against the drug maker by people claiming to have been injured Vioxx. The company has denied any wrongdoing.
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The New York State Common Retirement Fund, as the pension fund is officially known, is the second-largest public pension fund in the country. It has about $120.8 billion in assets and more than 970,000 retirees, beneficiaries and members.
http://www.nytimes.com/2004/11/30/business/01merckcnd.html?ex=1102482000&en=1ba4bf3278a043a1&ei=5093&partner=TOPIX

[Liberal Veteran]

1. Seems to me that this is reason investing SS into the market is bad.

But that won't stop them from trying.

[LifeDuringWartime]

2. sounds like a powerful group

970,000 people!