SAN DIEGO, Feb. 06, 2025 (GLOBE NEWSWIRE) — Robbins LLP reminds stockholders that a class action was filed on behalf of all purchasers of the American Depository Receipts (“ADRs”) of GSK PLC (NYSE: GSK) between February 5, 2020 and August 14, 2022. GSK is a global pharmaceutical company that develops, manufactures, and markets vaccines and medicines worldwide.
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The Allegations: Robbins LLP is Investigating Allegations that GSK PLC (GSK) Misled Investors Regarding its Recall of Zantac
According to the complaint, in September and October 2019, GSK suspended its distribution of Zantac and initiated a voluntary recall. In April 2020, the FDA requested that manufacturers cease selling Zantac and any generic alternatives. The complaint alleges that during the class period, defendants misrepresented the reasons it removed Zantac from the market and asserted that “there is no evidence of a causal association between ranitidine therapy and the development of cancer in patients,” even though GSK had concealed unpublished data showing a connection and implicating the Company’s liability to Zantac users.
Plaintiff alleges that tens of thousands of cancer-stricken patients filed personal injury and product liability lawsuits against GSK in the years that followed the recall.
According to the complaint, on August 10, 2022, a Deutsche Bank report alerted the market that it seemed “very possible” that GSK and other Zantac distributors “will incur the risk of some degree of shared liability, with the only real questions being what the magnitude of liability may be.” The Deutsche Bank report forecasted that the total liability in relation to the litigation could be between $5 billion and $10 billion. On this news, the price of GSK ADRs declined by $4.30 per ADR, or more than 10%.
The complaint further alleges that 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%.
What Now: You may be eligible to participate in the class action against GSK PLC. Shareholders who want to serve as lead plaintiff for the class must file papers with the court by April 7, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002.
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