Merck & Co. (MRK) and Schering-Plough Corp. (SGP) announced proposed settlements to shareholder lawsuits stemming from their merger, valued at $41 billion when announced in March.

The agreements must be approved by the court and will settle all claims brought by either company's shareholders "challenging any aspect" of the deal. No damages will be paid, but the settlements refer to the disclosure of additional information related to the deal and also may cover attorneys' fees and costs.

Both companies said the settlements aren't an admission of wrongdoing or liability and were reached to "avoid the further costs and inherent uncertainty of litigation."

The merger, which remains subject to government antitrust clearance and shareholder approval, is expected to close by year-end.

Shares of Merck recently rose 29 cents to $30.54, while Schering's stock was up 1 cent to $26.82.

In a filing with the Securities and Exchange Commission, Schering detailed allegations from certain suits, which alleged a breach of fiduciary duty to shareholders in agreeing to the Merck deal. It also included information on the amendments made to the merger agreement while it was being finalized.

Under its settlement, Merck didn't have to make additional disclosures, a spokeswoman said, and the bulk of information referenced in the agreement was already contained in a June filing with regulators. That information mostly relates to opinions issued by Morgan Stanley (MS), Goldman Sachs Group Inc. (GS) and JPMorgan Chase & Co. (JPM) that state Merck is paying a fair price of Schering. The opinions are based on evaluating the companies from various financial angles.

The drug makers also highlighted the fees paid to those same firms for financial advisory services, with JPMorgan receiving $45 million, Goldman Sachs getting $33.3 million and Morgan Stanley $22 million, all of which are fully paid upon closing of the deal.

Those firms also will receive reimbursement for expenses and are indemnified against certain liability that could arise from their work.

Shareholder lawsuits against merging companies - and their settlements - aren't unusual. Genentech Inc. and Roche Holding AG (RHHBY) reached a similar settlement before their March merger, including potential coverage of lawyers' fees.

-Thomas Gryta, Dow Jones Newswires; 212-416-2169; thomas.gryta@dowjones.com