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In a setback to Merck, a federal court judge has tossed a lawsuit in which the drugmaker charged the Kentucky Attorney General had violated its constitutional due process rights for using a contingency fee arrangement with outside lawyers to help pursue litigation over the marketing of the Vioxx painkiller. The two-year-old case had been closely watched because the outcome held the potential for complicating efforts by other states that have retained law firms to help prosecute drugmakers for violating consumer protection laws and Medicaid fraud. Merck (MRK) had hoped for a favorable ruling that would have crimped the ability of the AG to pursue the case and also send a message to other states.
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