Jury finds Merck at fault in Texas man’s Death

By Matt Daily

ANGLETON, Texas (Reuters) – A jury in the first civil trial against Merck & Co.’s popular painkiller Vioxx on Friday found the pharmaceutical company liable for the 2001 death of a Texas man, awarding his widow a total of more than $250 million.

The 12-member jury in Texas state court awarded a $24 million penalty to Carol Ernst, the widow of Robert Ernst for mental anguish and loss of companionship and $229 million in punitive damages.

Merck shares fell $2.51, or about 8.25 percent, to $27.90. Merck’s options trading volume spiked up as the verdict was announced in the trial, the first of more than 4,200 cases charging the drugmaker hid the heart attack and stroke risks of the blockbuster drug.

Merck exerted the largest drag on the Dow, which was up about 6 points in late afternoon trading at 10561.14, down from a session high of 10626.26.

"Everyone knew this was a hard case going in. The jurisdiction in which it was tried is very plaintiff friendly," said Brett Gallagher, a senior portfolio manager. "It probably was the most expected outcome, and now unfortunately the uncertainty drags on."

Plaintiff’s lawyer Mark Lanier said he expects Texas law limiting punitive damages would reduce that $229 million award.

"Merck sure ought to come to the table and accept its responsibility," he said.

Merck immediately said it would appeal the decision.

"There is no reliable scientific evidence that shows Vioxx causes cardiac arrhythmia, which an autopsy showed was the cause of Mr. Ernst’s death," Merck attorney Jonathan Skidmore said.

Ernst, a Walmart employee, was a long distance runner who often competed in marathons.