NEW YORK, NY / ACCESS Newswire / April 5, 2025 / Investors in GSK plc (NYSE:GSK) are being urged to consider their legal options following a class action securities lawsuit aimed at recovering losses suffered due to alleged fraud. The lawsuit targets shareholders who purchased shares between February 5, 2020, and August 14, 2022, a period marked by significant misrepresentations regarding the company's heartburn drug, Zantac.
The complaint, filed by Levi & Korsinsky, LLP, claims that GSK misled investors about its decision to withdraw Zantac from the market. The company stated that this action was based on information available at the time and discussions with regulators. Furthermore, GSK asserted that it was investigating the potential source of N-nitrosodimethylamine (NDMA), a carcinogenic compound associated with ranitidine, the active ingredient in Zantac. According to the lawsuit, these representations were materially false or misleading.
"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," the defendants claimed. However, the lawsuit alleges that GSK had known about the source of NDMA for nearly 40 years prior to its withdrawal of Zantac from the market.
As the case unfolds, investors who suffered losses during this timeframe are being encouraged to act quickly. The deadline for joining the class action is April 7, 2025. Those interested can find more information through the law firm’s website or by contacting attorney Joseph E. Levi directly at (212) 363-7500.
Rosen Law Firm, another major player in the legal landscape, is also reminding GSK investors of the same April 7 deadline. They emphasize that purchasers of American Depositary Receipts (ADRs) of GSK during the class period may be entitled to compensation without upfront fees. The firm highlights the importance of selecting qualified legal counsel, as many firms merely act as middlemen.
In a separate but related case, the Portnoy Law Firm is also advising GSK investors to file a lead plaintiff motion by the same date. The firm offers complimentary case evaluations for those looking to recover their losses. GSK’s Zantac has been under scrutiny for years, generating billions in revenue while allegedly concealing critical safety data.
According to the Portnoy Law Firm, a Glaxo scientist discovered in 1982 that ranitidine could react with nitrites to produce NDMA, a highly carcinogenic compound. This critical information was reportedly withheld from the public and investors for decades.
On August 10, 2022, a Deutsche Bank report suggested that GSK and other distributors of Zantac could be facing liability estimates ranging from $5 billion to $10 billion. Following this report, GSK’s ADRs saw a significant drop of over 10%. Just a day later, GSK acknowledged that it could provide liability guidance, estimating exposure between $1 billion and $10 billion, which led to an additional 3% decline in share value.
As the legal battles continue, investors are left grappling with the fallout from GSK's alleged mismanagement and lack of transparency regarding the safety of Zantac. The ongoing lawsuits represent a critical juncture for those who invested in GSK during the class period and are seeking justice for their losses.
For those interested in pursuing claims against GSK, the path forward is clear. Legal experts advise that investors should act swiftly to ensure they meet the necessary deadlines and secure their rights. The landscape of securities litigation can be complex, but firms like Levi & Korsinsky and Rosen Law Firm are prepared to guide investors through the process.
As the situation develops, it serves as a reminder of the importance of transparency and accountability in the pharmaceutical industry. Investors are encouraged to stay informed and take action to protect their financial interests.
In summary, the class action lawsuits against GSK plc represent a significant moment for shareholders seeking redress for alleged fraud. With the April 7 deadline looming, the window of opportunity for investors to join the fight for recovery is rapidly closing. Those affected are urged to reach out to legal counsel to discuss their options and ensure their voices are heard in this critical matter.
