NEW YORK, July 10, 2002 (PRIMEZONE) -- On July 3, 2002, Wolf Popper LLP filed a class action complaint against Merck & Co., Inc. (NYSE:MRK) on behalf of purchasers of Merck securities between July 1, 1999 and June 21, 2002, inclusive. A copy of the complaint is available from the U.S. District Court for the District of New Jersey and on Wolf Popper's website (www.wolfpopper.com). The allegations in the complaint relate to Merck's improper recognition of co-payments as revenue by its wholly owned subsidiary, Merck-Medco.
Subsequent to the filing of the complaint, on July 5, 2002, Merck filed an amended S-1 for the Merck-Medco initial public offering that quantified that $12.4 billion of its revenue recognized over the three year period from 1999 through 2001 (or nearly 10% of total revenue recognized over that period) was derived from co-payments made by consumers directly to pharmacies. Merck recognized those co-payments as revenue even though Merck-Medco did not receive those co-payments and had no credit risk for receipt of the co-payments by pharmacies.
On July 9, 2002, Merck announced a postponement of the planned initial public offering for the Merck-Medco subsidiary, due in part to investor concern about Merck's accounting practices and the underwriters' inability to price the offering at or above $18.00 per share.
Merck's disclosure on July 5, 2002 of the revenue impact of the co-payments, and the postponement of the Medco offering, have caused a further decline of approximately $4.00 per share from Merck's closing price on July 5, 2002.
Any member of the class who desires to be appointed lead plaintiff in the class action must file a motion with the Court no later than August 30, 2002. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff in this action, you may call or write:
Wolf Popper LLP, Robert C. Finkel, Esq. 845 Third Avenue, New York, NY 10022-6689
Tel.: 212.451.9620, Toll Free: 877.370.7703; Fax: 212.486.2093, Toll Free: 877.370.7704
Email: irrep@wolfpopper.com; website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca