Merck to pay $950 million to settle Vioxx caseMerck has agreed to pay $950 million and has pleaded guilty to a criminal charge over the marketing and sales of the painkiller Vioxx, the company and the Justice Department said. The negotiated settlement, which includes resolution of civil cases, was the latest of a series of fraud cases brought by federal and state prosecutors against major pharmaceutical companies. In a statement on Tuesday, Merck said that it had previously disclosed the seven-year investigation by the U.S. attorney in Massachusetts and had charged $950 million against its earnings in October 2010.
Boston Scientific gets U.S. approval for stentBoston Scientific Corp. said it gained U.S. approval for a new version of its drug-coated heart stent, a product the company will manufacture itself rather than licensing from a competitor. Boston Scientific, the second-biggest heart-device maker by revenue, will begin selling the Promus Element stent system immediately, the Natick, Mass.-based company said. While Boston Scientific had anticipated approval in advance of a mid-2012 target date, the company said it expects to record a $40 million pretax charge in the fourth quarter as a result of the early clearance by the U.S. Food and Drug Administration.
Retailers go after the Fed on swipe feesThe Federal Reserve was sued by retailer groups over new regulations governing so-called swipe fees, claiming the Fed disregarded the law when deciding how much banks can charge merchants for debit-card transactions. The groups, in a lawsuit filed in U.S. District Court in Washington, said retail merchants will be "substantially harmed" by the fees the Fed set under the Durbin Amendment, a provision of the Dodd-Frank legislation passed last year. The rule went into effect on Oct. 1. The case was filed by the National Retail Federation, the Food Marketing Institute and NACS, formerly the National Association of Convenience Stores.
Fed plans new stress tests for biggest banksBank regulators will test the ability of the nation's largest banks to withstand a new deep recession and wider financial crisis in Europe, the Federal Reserve said. Fed examiners will estimate the losses that would be incurred by the 19 largest U.S. banks -- including Citigroup, J.P. Morgan Chase and Bank of America -- if a new economic downturn drove the U.S. unemployment rate to 13 percent and if Europe experienced a severe recession. In other words, regulators want to know whether U.S. banks are funded well enough to remain solid even if the economy goes off the rails.
Deal in Japan to create third-largest exchangeThe Tokyo Stock Exchange, Japan's largest, announced a $1.1 billion merger deal with the Osaka Securities Exchange that would create the world's third-largest exchange, as measured by the value of listed stock. The deal, which would unify the two exchanges by January 2013, is a bid to keep up with stiff competition among global market operators and to put Japanese equities back on the world map. With listed stocks worth about $3.6 trillion, the new exchange would trail only NYSE Euronext and Nasdaq OMX, according to Reuters.
ESPN leadership succession revealedESPN President George Bodenheimer will relinquish his day-to-day responsibilities Jan. 1, with John Skipper taking over the role. The Walt Disney Co., which owns the sports network, made the announcement Tuesday, saying it was part of a companywide emphasis on succession plans. Last month, Disney CEO Bob Iger said he would step down in March 2015 to make way for a new chief executive. Skipper, 55, has been ESPN's executive vice president for content since October 2005.
Tribune Co. settles with ex-CEO for $675KTribune Co. agreed to pay former chief executive Randy Michaels $675,000 in a settlement stemming from his abrupt resignation from the company on Oct. 22, 2010. The company will also cover $50,000 in Michaels' legal fees, according to documents filed Tuesday in U.S. Bankruptcy Court in Delaware. Michaels, who resigned under pressure after news reports alleging he created a sexually charged "frat house" atmosphere in the corporate suite of the bankrupt media company, had demanded that he receive $900,000, the pro-rated potion of his planned 2010 management incentive bonus.
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