Merck, Schering-Plough settle legal speed bumps on merger path

The companies said the settlements were not admissions of wrongdoing.Pharmaceutical companies Merck & Co Inc. (NYSE: MRK), in the Whitehouse Station section of Readington, and Schering-Plough Corp. (NYSE: SGP), in Kenilworth, said Friday proposed settlements had been reached to resolve litigation that challenged their proposed merge.

Separate class-action lawsuits were filed in June on behalf of shareholders of the companies’ stock. One of the lawsuits alleged a breach of fiduciary duties by directors at Schering-Plough in relation to the deal — the timing of the merger announcement in March preceded the publication of drug trial results from Schering-Plough.

Merck shares rose 12.6 percent between closing on March 12 and closing on March 13, the lawsuit stated.

Merck and Schering-Plough said the settlements were not admissions of wrongdoing.

The settlements call for no damages to be paid by Schering-Plough or Merck. The plaintiff may apply to receive attorneys’ fees that would be paid by Merck.

The settlement includes additional disclosures by the companies regarding the merge, including more information on fees paid to financial advisers for Schering-Plough and Merck in relation to the merger.

The settlements are pending court approval.

Merck shares rose 36 cents, to $30.61, while Schering-Plough shares were up 5 cents, to $26.86, at midday.

E-mail Joao-Pierre Ruth at [email protected]