Shareholder Lawsuit Caused by GlaxoSmithKline's Avandia Drug
In the wake of allegations surrounding the harmful effects of its diabetes drug Avandia, GlaxoSmithKline now finds itself being sued by its shareholders. A class action suit has been filed by Kaplan Fox and Kilsheimer against both the giant drug firm and selected GSK officers, in relation to all the shareholders who acquired securities between October 27th 2005 and May 21st this year.
The complaint, filed in the US Court for the Southern District of New York, relates to GSK's violation of Sections 10 (b) and 20(a) of the Securities Exchange Act (1934), in its public release of a string of misleading and false statements in connection with Avandia. It highlights specifically how, allegedly, GSK covered up its insight into Avandia's tendency to induce cardiovascular problems; this information gained during a meta-analysis which combined the results of several clinical tests.
Although these results were presented to the US Food and Drug Administration in preliminary form in September 2005, and subsequently represented a year later once more established, these, the complaint alleges, were never officially released into the public domain.
In May, Avandia was put firmly under scrutiny when the New England Journal of Medicine linked the drug to heart attacks among its users.
Source - Pharmaceutical International's US Correspondent
Recent Related GlaxoSmithKline News Items:
GlaxoSmithKline Further Defends Avandia Drug
GlaxoSmithKline Dispels Avandia Heart Attack Risk
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