GlaxoSmithKline sued by shareholders in US over Avandia claims
Source: Forbes.com
LONDON (Thomson Financial) - GlaxoSmithKline PLC is being sued by shareholders in a US Court over claims related to its Avandia diabetes drug.
Kaplan Fox & Kilsheimer has filed a class action suit in the US Court for the Southern District of New York against the drugs firm, and certain of its officers, on behalf of all persons or entities who purchased GSK securities between October 27, 2005 and May 21, 2007.
The complaint alleges that during this period defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by publicly issuing a series of false and misleading statements regarding Avandia, GSK's popular diabetes drug.
In particular, the complaint alleges that GSK failed to adequately disclose the fact that it had performed a meta-analysis - a pooled analysis of several clinical trials related to Avandia which showed an increased risk of heart attacks.
Preliminary results of this analysis were presented to the FDA in September 2005 and updated results were disclosed to the FDA in August 2006. However, the results of GSK's meta-analysis were never adequately disclosed to the investing public, the shareholder group has alleged.
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