Merck Faces Class Action Lawsuit Over Alleged Misleading Statements on Revenue Outlook and Gardasil Vaccine Growth

Merck & Co Inc faces a class action lawsuit alleging misleading statements regarding revenue outlook and Gardasil vaccine growth in China. The lawsuit spans from Feb 3, 2022, to Feb 3, 2025. The investigation by Bragar Eagel & Squire highlights the firm's commitment to protecting shareholder rights, while the allegations could result in financial liabilities and reputational damage for Merck. The lawsuit could impact Merck's financial health and strategic decisions, particularly in international markets.

Merck & Co Inc (MRK) is currently under investigation by Bragar Eagel & Squire, P.C., following a class action complaint filed on February 12, 2025. The lawsuit alleges that Merck made false or misleading statements regarding its revenue outlook and the growth of its Gardasil vaccine, particularly in China. The class period for the lawsuit spans from February 3, 2022, to February 3, 2025 [1].

The investigation by Bragar Eagel & Squire highlights the firm's commitment to protecting shareholder rights. However, the allegations could result in financial liabilities and reputational damage for Merck. The lawsuit alleges that Merck created a false impression of reliable information about its projected revenue outlook and anticipated growth of Gardasil, while minimizing risks from competition and drug approval development, such as China's approval to shift Gardasil to a 2-dose regimen [1].

On July 30, 2024, Merck revealed that there was a significant step down in shipments from its distributor and commercialization partner, Zhifei, into the points of vaccination, resulting in above normal inventory levels at Zhifei. This announcement led to a nearly 10% drop in Merck's stock price [1]. Then, on February 4, 2025, Merck published its fourth quarter fiscal year 2024 results, disclosing that Gardasil sales declined by 3% to $8.6 billion. This disclosure resulted in a more than 9% drop in Merck's stock price [1].

The lawsuit could impact Merck's financial health and strategic decisions, particularly in international markets. The allegations suggest potential weaknesses in Merck's market strategy and forecasting. The stock price declines following the revelations indicate investor concerns, which could lead to increased volatility and risk for shareholders [2].

Investors who believe they have suffered losses due to Merck's alleged misleading statements can contact Bragar Eagel & Squire, P.C. by phone at (212) 355-4648 or via email at investigations@bespc.com [1].

References:
[1] https://www.morningstar.com/news/globe-newswire/9497046/merck-alert-bragar-eagel-squire-pc-is-investigating-merck-co-inc-on-behalf-of-long-term-stockholders-and-encourages-investors-to-contact-the-firm
[2] https://www.gurufocus.com/news/2988970/merck-co-inc-mrk-faces-class-action-lawsuit-over-alleged-misleading-statements-mrk-stock-news