A securities class action has been filed in the USDC — E.D.PA. against GSk plc (GSK) (“GSK” or the “Company”), on behalf of all persons or entities who purchased or otherwise acquired GSK American Depositary Receipts (“ADRs”) between February 5, 2020, and August 14, 2022, both dates inclusive (the “Class Period”).
GSK is a global pharmaceutical company that develops, manufactures, and markets vaccines and medicines worldwide. Current best-selling GSK products include Trelegy Ellipta, an inhaler used to treat asthma, and Shingrix, a vaccine that protects against shingles. For many years, however, GSK’s most lucrative product was a popular treatment for heartburn and acid reflux: Zantac.
The Complaint alleges that, throughout the Class Period, the Defendants represented to investors that GSK removed Zantac from the market “[b]ased on information available at the time and correspondence with regulators.” GSK also stated that it was “continuing with investigations into the potential source of NDMA.” Defendants also assured investors that “GSK, the FDA, and the EMA [European Medicines Agency] have all independently concluded that there is no evidence of a causal association between ranitidine therapy and the development of cancer in patients,” findings that were “consistent with other ranitidine data published prior to 2019.” Finally, Defendants claimed that they could not “quantify or reliably estimate the liability.”
The price of GSK ADRs declined further on August 15, 2022, when GSK admitted that it could, in fact, provide guidance and that its liability exposure was between $1 billion and $10 billion. The eventual settlement of $2.2 billion fell squarely in that range. These disclosures caused GSK ADRs to decline an additional $1.08 per ADR, or 3%.
If you purchased GSK ADRs during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.