The Watcher

From the New York Times Business section (free registration):

The suit, brought in United States District Court in Trenton, said that the pension fund lost about $171 million on Sept. 30, when the company, citing increased heart risks in tests of people who had used Vioxx for more than 18 months, withdrew it from the market. On that day, the price of a share of Merck stock plummeted 27 percent, and it has since drifted lower. Merck shares are down almost 40 percent so far this year, though they closed up 35 cents yesterday, at $28.02.

The suit appears to be the first by a pension fund against Merck, which is based in Whitehouse Station, N.J. A company spokeswoman, Joan Wainwright, said that about 15 lawsuits had been filed, contending that Merck misled shareholders. Several hundred personal injury lawsuits have also been filed against Merck by people claiming to have been injured by Vioxx.

The company has denied any wrongdoing.

I think this is a good example why putting any social security money into the stock market in a move to privatize it is a bad idea.