Exhibits 3 to 3A
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Case 2:05-cv-02367-SRC-CLW Document 994 Filed 05/04/16 Page 1 of 192 PageID: 65913 REDACTED VERSION CONTAINS INFORMATION DESIGNATED AS CONFIDENTIAL UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY IN RE MERCK & CO., INC. SECURITIES, MDL No. 1658 (SRC) DERIVATIVE & “ERISA” LITIGATION Civil Action No. 05-1151 (SRC) THIS DOCUMENT RELATES TO: THE Civil Action No. 05-2367 (SRC) CONSOLIDATED SECURITIES ACTION DECLARATION OF MAX W. BERGER AND SALVATORE J. GRAZIANO IN SUPPORT OF CO-LEAD COUNSEL BERNSTEIN LITOWITZ BERGER & GROSSMANN LLP’S APPLICATION FOR AN AWARD OF ATTORNEYS’ FEES AND REIMBURSEMENT OF LITIGATION EXPENSES Case 2:05-cv-02367-SRC-CLW Document 994 Filed 05/04/16 Page 2 of 192 PageID: 65914 REDACTED VERSION CONTAINS INFORMATION DESIGNATED AS CONFIDENTIAL TABLE OF CONTENTS Page I. INTRODUCTION .............................................................................................................. 1 II. THE OUTSTANDING RECOVERY ACHIEVED ........................................................... 2 III. SUMMARY OF BLB&G’S LITIGATION EFFORTS ..................................................... 2 IV. A BRIEF HISTORY OF THE LITIGATION PRIOR TO MISSISSIPPI PERS’ MOTION TO INTERVENE ............................................................................................... 5 V. BLB&G’S PROSECUTION OF THE ACTION ................................................................ 6 A. Mississippi PERS Moved to Intervene ................................................................... 6 B. The Court Dismissed the Fourth Amended Class Action Complaint on Statute of Limitation Grounds ................................................................................ 9 C. BLB&G Successfully Appealed the District Court’s Dismissal of the Action to the Third Circuit .................................................................................... 12 D. BLB&G Identified Plaintiffs’ Supreme Court Specialist and Worked to Defeat Defendants’ Appeal to the U.S. Supreme Court ....................................... 15 E. BLB&G Investigated and Drafted the Consolidated Fifth Amended Class Action Complaint .................................................................................................. 22 F. BLB&G Drafted Lead Plaintiffs’ Opposition to Defendants’ Motion to Dismiss the Fifth Amended Complaint and Successfully Argued that Motion ................................................................................................................... 23 G. BLB&G Was Instrumental in Certifying the Class .............................................. 27 H. BLB&G Successfully Moved to Amend Plaintiffs’ Complaint and Filed a Sixth Amended Complaint .................................................................................... 38 I. BLB&G Opposed Defendants’ Motion for Judgment on the Pleadings ............... 40 J. BLB&G Led Co-Lead Counsel’s Discovery Efforts and Pursued Novel Theories of Recovery on Behalf of the Class ....................................................... 40 1. BLB&G Pursued Extensive Discovery from Defendants ......................... 40 2. BLB&G Managed the Extensive Document Review and Reviewed Millions of Pages of Documents ............................................................... 52 3. BLB&G Pursued Extensive Deposition Discovery .................................. 55 Case 2:05-cv-02367-SRC-CLW Document 994 Filed 05/04/16 Page 3 of 192 PageID: 65915 REDACTED VERSION CONTAINS INFORMATION DESIGNATED AS CONFIDENTIAL 4. BLB&G Took Extraordinary Measures to Obtain Important New Discovery from Certain Critical Witnesses .............................................. 64 a. Dr. Edward Scolnick ..................................................................... 64 b. Dr. Garret FitzGerald .................................................................... 70 c. Dr. John Oates ............................................................................... 72 d. Dr. Carlo Patrono .......................................................................... 74 e. Dr. Loren Laine ............................................................................. 75 f. Dr. Saurabh Mukhopadhyay ......................................................... 77 K. BLB&G Retained and Worked Closely with All Experts .................................... 78 L. BLB&G Responded to Defendants’ Contention Interrogatories .......................... 90 M. BLB&G Drafted Plaintiffs’ Successful Opposition to Defendants’ Motions for Summary Judgment ......................................................................................... 91 N. BLB&G Retained Lead Plaintiffs’ Jury Consultant and Conducted a Successful Mock Trial .......................................................................................... 93 O. BLB&G Drafted Plaintiffs’ Motion for Bifurcation ............................................. 94 P. BLB&G Identified, and Moved to Exclude, the Two Defense Experts Most Subject to Attack at the Daubert Stage........................................................ 94 1. BLB&G Moved to Exclude Defendants’ Damages Expert, Dr. Christopher James ..................................................................................... 94 2. BLB&G Moved to Exclude Defendants’ FDA Expert, Dr. Lisa Rarick ........................................................................................................ 95 Q. BLB&G Defended All of Plaintiffs’ Experts from Attack at the Daubert Stage ...................................................................................................................... 96 1. BLB&G Defended Plaintiffs’ Damages Expert Dr. Tabak ...................... 97 2. BLB&G Defended Plaintiffs’ Cardiology Expert Dr. Zipes .................... 99 3. BLB&G Defended Plaintiffs’ Statistics Expert Dean David Madigan .................................................................................................. 100 4. BLB&G Defended Plaintiffs’ Marketing Expert Harry Boghigian ........ 101 5. BLB&G Defended Plaintiffs’ FDA Expert Dr. David Kessler............... 102 ii Case 2:05-cv-02367-SRC-CLW Document 994 Filed 05/04/16 Page 4 of 192 PageID: 65916 REDACTED VERSION CONTAINS INFORMATION DESIGNATED AS CONFIDENTIAL 6. BLB&G Defended Lead Plaintiffs’ Reliance on the Testimony of Dr. David J. Graham ............................................................................... 104 7. BLB&G Defended Lead Plaintiffs’ Reliance on the Testimony of Drs. Curfman, Topol and Fries ............................................................... 106 R. BLB&G Spearheaded Plaintiffs’ Motion in Limine Strategy ............................. 107 S. BLB&G Drafted and Managed the Exchange of All Pretrial Materials with Defendants and Filed the Pretrial Order ............................................................. 111 T. BLB&G Led Plaintiffs’ Efforts to Withstand Potentially Dispositive U.S. Supreme Court Decisions ................................................................................... 118 1. Matrixx .................................................................................................... 118 2. Janus ....................................................................................................... 120 3. Halliburton .............................................................................................. 121 4. Omnicare and Freidus ............................................................................ 122 U. BLB&G Led Lead Plaintiffs’ Efforts to Mitigate Other Serious Risks to the Class .............................................................................................................. 124 V. Max Berger Led Plaintiffs’ Settlement Negotiations, and Responded to the Court’s and Mediator’s Questions, and BLB&G Was Responsible for Negotiating the Settlement and Drafting the Stipulation of Settlement and Preliminary Approval Papers .............................................................................. 129 VI. LODESTAR AND EXPENSES ..................................................................................... 132 iii Case 2:05-cv-02367-SRC-CLW Document 994 Filed 05/04/16 Page 5 of 192 PageID: 65917 REDACTED VERSION CONTAINS INFORMATION DESIGNATED AS CONFIDENTIAL MAX W. BERGER and SALVATORE J. GRAZIANO declare as follows: I. INTRODUCTION 1. I, Max W. Berger, am a member of the bars of the State of New York, the U.S. District Courts for the Southern and Eastern Districts of New York, the U.S. Court of Appeals for the Second Circuit and the U.S. Supreme Court. I am a founding Partner of the law firm of Bernstein Litowitz Berger & Grossmann LLP (“BLB&G”). I have personal knowledge of the matters set forth herein based on my active participation in the prosecution and settlement of the claims asserted on behalf of the Settlement Class (defined below) in this consolidated securities class action lawsuit (the “Action”).1 2. I, Salvatore (“Sal”) J. Graziano, am a member of the bars of the State of New York, the U.S. District Courts for the Southern and Eastern Districts of New York, and the U.S. Courts of Appeals for the First, Second, Third, Ninth, and Eleventh Circuits. I have been admitted to appear pro hac vice before this Court in the Action. I am also a Partner of the law firm of BLB&G. I have personal knowledge of the matters set forth herein based on my active participation in the prosecution and settlement of the claims asserted on behalf of the class in this Action from the time I became involved in this Action in 2007 and based on available records and