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GLAXF.US
id: 1487
GSK (GSK) Zantac Liability Misrepresentation Case
E.D. Pennsylvania
Court2:25-cv-00618
Case number02/05/2000
Class period Start08/14/2022
Class period End04/07/2025
Lead Plaintiff motion deadline- $GSK investors filed a lawsuit against GSK PLC, alleging the company misled shareholders about the risks and potential liability related to Zantac litigation.
- On August 10, 2022, a Deutsche Bank report suggested GSK could face billions in liability for Zantac lawsuits. Following this news, $GSK dropped over 10%.
Case Details:
Between February 5, 2020, and August 14, 2022, GSK repeatedly assured investors that it had removed Zantac from the market in 2019 as a precautionary measure based on available data and regulatory discussions. The company stated it was working with regulators to assess the issue and insisted that no scientific evidence linked Zantac to cancer. GSK also maintained that it was impossible to quantify any potential liability from lawsuits.
However, evidence dating back to 1982 showed that GSK knew that ranitidine (Zantac’s active ingredient) could form N-nitrosodimethylamine (NDMA), a known carcinogen, under certain conditions. GSK kept this data hidden for nearly 40 years until independent testing in 2019 exposed the issue. Lawsuits from tens of thousands of cancer patients followed, leading to a massive multidistrict litigation (MDL) case.
On August 10, 2022, a Deutsche Bank report warned that GSK and other companies involved in Zantac production could face liability between $5 billion and $10 billion. This contradicted GSK’s claims that legal risks were minimal, causing $GSK to drop over 10%.
On August 15, 2022, GSK acknowledged for the first time that its liability exposure could be between $1 billion and $10 billion, leading to another 3% decline in $GSK. The eventual $2.2 billion settlement fell within this range, confirming that the company had significantly downplayed its risks.
Based on these events, $GSK investors filed a lawsuit against GSK PLC, claiming the company:
- It misled investors about Zantac’s safety risks and concealed internal reports linking the drug to NDMA.
- It downplayed the financial and legal risks of Zantac-related lawsuits.
Investors believe GSK misrepresented the true extent of its Zantac liability.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Depository Securities (ADS, ADR, GDR)
Trade Direction
Long
Shock Event Date
08/10/2022
Filing date
02/04/2025
Lead Plaintiff Deadline
04/07/2025