It’s been nearly five years since Merck pulled Vioxx off the market, but it will be a while longer before the legal system is through with the case. The Supreme Court said yesterday that it would hear Merck’s appeal in a lawsuit filed by shareholders who argue that the company misled them by downplaying data that suggested Vioxx raised the risk of heart attacks. The case has been on-again, off-again: A federal judge ruled that the statute of limitations had expired before the lawsuit was filed, then an appeals court overturned that decision , then Merck appealed that ruling to the Supreme Court. The question involves a securities-lawsuit shot-clock: Once investors become aware that fraud may have occurred, they have two years to file a lawsuit. But how much information must be made public for investors to know that fraud may have

occurred? How do you decide when to start the clock? That’s what’s at stake in this case. Merck argues that there were enough Vioxx data publicly available by 2001 to start the clock on the statute of limitations. The appeals court disagreed, allowing the case to proceed. As the WSJ’s Law Blog notes, the Supremes could clarify the rules for how much information is enough to start the clock running, which could have widespread implications for the statute of limitations for filing securities-fraud claims. Point of Order : Just to be clear, this is a separate suit from the liability cases brought on behalf of patients who may have been injured by Vioxx. Merck already set aside nearly $5 billion to settle those cases. Photo: Associated Press

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Supremes Will Hear Merck Appeal in Vioxx Shareholder Lawsuit