Merck & Co. Investors Face Final Deadline Today to Lead Securities Fraud Lawsuit Amid Gardasil Fallout

Investors in Merck & Co., Inc. (NYSE: MRK) have until today, April 14, 2025, to file to become lead plaintiff in a securities fraud lawsuit alleging the pharmaceutical giant misled investors about its flagship Gardasil vaccine’s performance in China. The case, which could reshape Merck’s financial accountability narrative, centers on claims the company inflated expectations by concealing weak demand and inflated distributor inventories, leading to a nearly 30% stock price collapse over two critical disclosures.

The Allegations: A Pattern of Misleading Optimism

The lawsuit, filed by the Schall Law Firm and other prominent investor rights groups, accuses Merck of violating federal securities laws by disseminating “materially false and misleading statements” between February 2022 and February 2025. At the heart of the claims is Merck’s portrayal of Gardasil’s success in China, where the company allegedly overstated consumer demand and downplayed critical issues:

1. Overstocked Distributors: Merck’s Chinese partner, Zhifei, reportedly held inflated inventory levels due to unmet demand, a fact Merck allegedly failed to disclose.
2. Abandoned Forecasts: The company had long promoted a $11 billion sales target for Gardasil by 2030—a goal it scrapped in February 2025 after admitting it could no longer meet expectations.
3. Regulatory Shifts Ignored: China’s approval of a two-dose Gardasil regimen, which reduces demand, and competition from cheaper alternatives were allegedly omitted from public statements.

The complaint argues these omissions artificially inflated Merck’s stock price during the class period, misleading investors into purchasing shares at prices that plummeted once the truth emerged.

Stock Price Plummets as Truth Emerge

The lawsuit’s timeline aligns with two devastating stock declines:

• July 30, 2024: Merck revealed reduced Gardasil shipments to China due to overstocked inventories. The stock dropped 9.8%, closing at $115.25.
• February 4, 2025: Merck announced it would halt shipments to China until mid-2025 and abandon its $11 billion 2030 sales target. The stock fell another 9.1%, closing at $90.74.

From its peak of $137.50 in early 2022, MRK’s stock had fallen to $90.74 by February 2025—a 34% decline—before modest recovery in the weeks following the lawsuit’s filing.

Legal Landscape: A Race Against the Clock

The case, Cronin v. Merck & Co., Inc., No. 25-cv-01208 (D.N.J.), is now in its critical phase. Investors who purchased MRK shares between February 3, 2022, and February 3, 2025, may qualify to participate. However, only those who act by today’s deadline can seek lead plaintiff status, a role reserved for the investor with the largest documented losses.

Multiple law firms, including Faruqi & Faruqi, The Law Offices of Frank R. Cruz, and Robbins Geller Rudman & Dowd, are representing investors. While lead plaintiff status requires significant losses (typically over $100,000), all class members—including those who do not pursue leadership—retain the right to share in any recovery.

Why This Matters for Investors

The case underscores a broader theme in pharmaceutical litigation: transparency in emerging markets. Merck’s alleged failure to disclose risks in China—a critical market for Gardasil—reflects a pattern seen in past cases, such as Valeant’s missteps in pricing or Theranos’ deceptive practices.

For Merck, the lawsuit adds to its operational challenges, including rising competition and regulatory scrutiny. The company’s ability to recover hinges on its response to the litigation and its strategy to stabilize Gardasil’s sales pipeline.

Conclusion: A Crossroads for Merck and Investors

The April 14 deadline marks a pivotal moment for Merck investors. With over $1 billion in potential losses for class members and a legal landscape favoring transparency, the outcome could redefine investor confidence in the company.

The data paints a stark picture:
- Stock decline: 34% peak-to-trough drop from 2022 to 2025.
- Market cap loss: Approximately $24 billion erased since 2022.
- Litigation stakes: Merck faces not only financial penalties but reputational damage in a sector where trust is paramount.

For those holding shares during the class period, today’s deadline is not merely procedural—it’s a chance to hold Merck accountable for alleged fraud and potentially recover losses. As the case moves forward, the stakes for Merck’s future and investor rights remain as high as its stock once was.

Act now—or risk losing your voice in this landmark case.