A panel of judges from the Third Circuit Court of Appeals – in a 2 to 1 ruling - reversed a ruling by a federal judge in Newark, New Jersey who had dismissed a securities fraud lawsuit against Merck & Co in April 2007.

Lawyers for the plaintiffs applauded the ruling and said it will allow them to move forward with the case, which seeks billions of dollars in damages. The securities suit is unrelated to a $ 4.85 billion dollar settlement between Merck and plaintiffs who filed personal injury lawsuits against the company, and in which at least 97 percent of plaintiffs have agreed to participate.

Merck had to withdraw its blockbuster painkiller Vioxx in 2004 after a post-market clinical trial revealed the drug had increased patients´ risk of heart attacks and strokes, sparking off lawsuits in the billions.

Merck said it was considering asking either the full court of appeals or the U.S. Supreme Court to review the panel's decision. Merck also said it may renew its request to dismiss the suit on additional grounds.

The federal judge in Newark had dismissed the securities suit because he said the plaintiffs´ claims were time-barred due to statutes of limitations.