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The price of Merck's stock took a tumble in June 2001 after The Wall Street Journal reported that a Merck subsidiary had over-reported revenues by more than $4.6 billion. Soon after, investors filed a securities fraud suit alleging that Merck had hidden the truth. But the 3rd Circuit has now ruled that the suit was properly dismissed because Merck had disclosed the nature of its subsidiary's improper accounting practices in an April 2001 SEC filing, and that the reporter "simply did the math."
December 20, 2005 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
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