San Francisco, January 30, 2025 (GLOBE NEWSWIRE) -- Novo Nordisk A/S (NYSE: NVO) finds itself entangled in legal challenges as investors initiate a class-action lawsuit, claiming the pharmaceutical titan misled them about its experimental obesity drug, CagriSema. The lawsuit is raising alarms, urging investors who bought Novo Nordisk shares and incurred significant losses to come forward.
The legal proceedings, filed in the U.S. District Court for the District of New Jersey and identified as Moon v. Novo Nordisk A/S (No. 25-cv-00713), allege serious securities violations. Plaintiffs accuse the company and several high-ranking executives of providing false or misleading information about the results of CagriSema's Phase 3 trial, known as REDEFINE-1. This suit encompasses investors who acquired Novo Nordisk securities between November 2, 2022, and December 19, 2024.
At the crux of the allegations is the claim of misrepresentation concerning the drug’s efficacy, particularly its potential to help patients achieve at least 25% weight loss during the trial. The lawsuit warns of creating a "false impression" of the data's reliability, as it allegedly downplayed significant concerns surrounding dosage tolerability.
Specifically, the complaint details how Novo Nordisk's "repeated optimistic claims" about CagriSema did not match reality. According to the lawsuit, the study’s flexible protocol allowed participants to adjust their dosages, which may have impeded accurate assessments of weight loss at the proposed dosages. This irregularity raises concerns about worse-than-expected tolerability, which likely forced patients to lower their doses or involved hastily conducted patient selections of those not genuinely aiming for the targeted weight reduction.
On December 20, 2024, Novo Nordisk released headline results from the REDEFINE-1 trial, announcing the utilization of this flexible dosing method. This announcement was telling; only 57.3% of participants receiving CagriSema managed to stay on the highest dosage after 68 weeks. Comparatively, 82.5% of patients on cagrilintide and 70.2% on semaglutide, the other medications being assessed, successfully reached the same dosage level. Following the unfortunate news, the company’s stock plummeted nearly 18%.
Investors argue this dramatic decline depicts the repercussions of allegedly misleading representations made by Novo Nordisk. Hagens Berman, the shareholder rights firm spearheading the investigation, is now delving deep to ascertain whether Novo Nordisk intentionally misled investors about both the trial’s structure and the potential dosage-related issues. Reed Kathrein, the leading partner from Hagens Berman, stated, “We’re examining whether Novo Nordisk may have intentionally misled investors about the trial’s design and potential tolerability issues.”
Investors who wish to share their financial losses or possess information related to the case are encouraged to reach out to Hagens Berman. The firm has indicated its readiness to assist those impacted by the alleged discrepancies surrounding CagriSema.
Further heightening the stakes, whistleblowers possessing non-public information about Novo Nordisk are urged to disclose their insights, potentially facilitating the investigation under the SEC Whistleblower Program. Such whistleblowers could earn rewards reaching up to 30% of any successful SEC recovery.
Established as a global plaintiffs’ rights litigation firm, Hagens Berman specializes in ensuring corporate accountability. The firm has successfully represented numerous investors, whistleblowers, and consumers, having achieved over $2.9 billion across complex legal matters.
With this backdrop, stakeholders are left speculating about Novo Nordisk’s future, as the allegations threaten not only its reputation but potentially its market position as well. The pharmaceutical sector, particularly those involved with cutting-edge treatments for obesity, is closely monitoring the developments. This case may serve as a stern reminder about the necessity for transparency and accuracy within the pharmaceutical industry, particularly when investors are significantly impacted.