Vioxx Revisited
Not long ago, we posted an explanation of the value of punitive damages, and mentioned in that post that Merck had reportedly calculated that it could save $229 million dollars by delaying a change in the warnings associated with Vioxx. A jury sought to cost Merck exactly that much through a punitive damage award, hoping to ensure that the pharmaceutical giant didn't profit from it's bad decision. Punitive damage caps undermined that effort, but it looks like Merck ended up paying the price anyway--unfortunately, without benefit to the plaintiffs. Op Ed News is reporting that during 2005, Merck paid $285 million in legal defense costs related to Vioxx. It's nice that Merck's casual decision to risk the lives of its customers is costing them, but unfortunate that it's the defense attorneys rather than the injured parties who profit.