Activism

GSK sued over diabetes drug disclosure

GlaxoSmithKline (GSK) is being sued by shareholders in connection with Avandia, its diabetes drug. The suit has been filed on behalf of investors who purchased GSK shares between 27 October 2005 and 21 May 2007.

On 21 May 2007, analysis published in the New England Journal of Medicine revealed Avandia increased the risk of heart attacks. The complaint – filed by law firm Kaplan Fox & Kilsheimer – alleges that GSK failed to adequately disclose the fact that it had performed clinical trials that produced similar results.

Kaplan Fox & Kilsheimer said as a result of reports regarding the analysis the price of GSK shares has declined 7.8%.

July 2007