By Anne Urda

Law360, New York (April 11, 2008, 12:00 AM ET) -- As the controversy over Vytorin and Zetia continues to grow, Schering-Plough Corp. and several underwriters have been hit with a proposed securities class action over their alleged failure to disclose to the investing public the bleak results of a study on the popular anti-cholesterol drugs.

The Arkansas Teacher Retirement System filed suit Monday against Schering-Plough; its chief executive officer, Fred Hassan; and underwriters including Bear Stearns Cos., Citigroup and Goldman Sachs. The suit, which will probably be merged into pending multidistrict litigation, claims that the retirement...