Shareholders of GlaxoSmithKline (GSK) are preparing an investor class action lawsuit over "false and misleading statements" made by the drug company about its diabetes drug, Avandia.
It's only recently been revealed that GSK's blockbuster drug increases the chances of congestive heart failure by 45 per cent. Since the alert was published, GSK shares have fallen 10 per cent.
But shareholders are claiming that GSK was aware of the drug's dangers back in 2005, but never released the data. Instead, the initial analysis was sent to the drug industry's friend, the Food and Drug Administration (FDA), which, of course, sat on the data for two years.
Investors who bought shares between October 2005, when GSK sent the initial research findings to the FDA, and last May, when the risks of the drugs were finally publicised, may be included in the suit.
(Source: The Guardian, June 13, 2007).
E-news broadcast 14 June 2007 No.368 [Subscribe]
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