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GLAXF.US
id: 1487

GSK (GSK) Zantac Liability Misrepresentation Case

E.D. Pennsylvania
Court
2:25-cv-00618
Case number
02/05/2000
Class period Start
08/14/2022
Class period End
04/07/2025
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%.
  • $GSK investors can join this case to be notified about potential recovery

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
Collecting participants…

GSK plc

GSK plc, together with its subsidiaries, engages in the research, development, and manufacture of vaccines, and specialty and general medicines to prevent and treat disease in the United Kingdom, t...

    Ticker
    GLAXF.US
    ISIN
    GB0009252882
    CIK
    0001131399
    Sector
    Healthcare
    Industry
    Drug Manufacturers - General
    Country
    USA
    Address
    79 New Oxford Street, England, United Kingdom, WC1A 1DG