Suit Seeks to Recover Losses for Investors who Purchased Securities of GSK
A class action lawsuit has been filed a in the United States District Court for the Southern District of New York against GlaxoSmithKline PLC (Nachrichten/Aktienkurs) (NYSE: GSK) and certain of its officers, on behalf of all persons or entities who purchased GSK securities between October 27, 2005 and May 21, 2007, inclusive. The Complaint alleges that during the Class 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, In particular, the Complaint alleges that GSK failed to adequately disclose the fact that it had performed 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 analysis were never adequately disclosed to the investing public. As alleged in the Complaint, on May 21, 2007, before the close of trading, the results of a meta-analysis on Avandia conducted by a doctor with the Cleveland Clinic was reported and published in the New England Journal of Medicine. As a result of the reports regarding the meta-analysis, the price of GSK securities declined US$4.53 per share, or 7.8%, to close at US$53.18 per share, on unusually heavy trading volume.
