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Published January 14, 2025
Shocked investors quickly dumped their shares of AstraZeneca after Chinese authorities accused the pharmaceutical giant of insurance fraud. The sell-off caused AstraZeneca’s stock price to plummet more than 10%, prompting some angry shareholders to file a class-action lawsuit against the Company.
In October 2024, AstraZeneca posted an announcement to its Website stating its Chinese branch president was under investigation by Chinese authorities. A few days later, a Chinese financial news outlet reported AstraZeneca was being investigated for massive insurance fraud. Allegedly, the Company forged prescriptions and genetic tests to ramp up benefits for some of its drugs.
In December 2024, the Financial Times published an article stating AstraZeneca executives reported revenue hits in the wake of the arrests and that some Chinese doctors were now reluctant to prescribe AstraZeneca products.
The articles prompted shocked investors to rapidly sell off their shares. Some of those investors are now joining the lawsuit.