Novo Nordisk A/S (NVO) Securities Class Action Lawsuit Update

Introduction to Novo Nordisk A/S (NVO) Securities Class Action Lawsuit

A federal securities class action has been filed against Novo Nordisk A/S (NYSE: NVO). The case covers investors who purchased Novo securities between May 7, 2025 and July 28, 2025. Investors allege the company misrepresented its 2025 growth prospects by understating the continuing impact of the "personalization" exception to the compounded GLP-1 exclusion and overstating how many patients would move from compounded products to Novo's branded drugs. On July 29, 2025, Novo cut its sales and profit outlook, citing persistent use of compounded GLP-1s, slower-than-expected market expansion, and competition—developments that the complaint alleges were in direct contrast to earlier assurances. The revelations were followed by a sharp single-day stock decline.

Case Details

Case Name: Barta v. Novo Nordisk A/S, et al.

Case No.: 2:25-cv-14045

Jurisdiction: U.S. District Court, District of New Jersey

Filed on: August 1, 2025

Novo Nordisk A/S (NVO) Company Profile

Novo is a healthcare company focused on the research, development, manufacturing, and distribution of pharmaceutical products globally. It operates in two segments—diabetes and obesity, and rare diseases—with international headquarters outside Copenhagen, Denmark, and U.S. headquarters in Plainsboro, New Jersey.

Novo Nordisk A/S (NVO) Securities Lawsuit Class Period

May 7, 2025–July 28, 2025, inclusive.

All those who purchased or otherwise acquired Novo's common stock during the Class Period (the "Class") and were damaged upon the revelation of the alleged corrective disclosure are included. Excluded are defendants, the company's officers and directors at all relevant times, their immediate families, legal representatives, heirs, successors or assigns, and any entity in which defendants have or had a controlling interest.

Allegations in the Novo Nordisk A/S (NVO) Lawsuit

According to the complaint, the lawsuit targets Novo Nordisk A/S and senior executives Maziar Mike Doustdar, Lars Fruergaard Jørgensen, Karsten Munk Knudsen, and David S. Moore. The case centers on what they told investors about 2025 growth—specifically, that compounded GLP-1 use would decline and patients would move to branded products, fueling sales in the second half of 2025.

On May 7, 2025, during an earnings call, Executive Vice President of U.S. Operations David S. Moore said the FDA had removed semaglutide from the drug shortage list and that compounding would be illegal under U.S. law except for rare exceptions, framing Novo's role in ensuring access to legitimate semaglutide. That same day, Executive Vice President of International Operations Maziar Mike Doustdar spoke to unmet need and broader launches, underscoring supply availability. Chief Financial Officer Karsten Munk Knudsen guided 2025 sales growth of 13% to 21% at constant exchange rates, stating the outlook assumed a reduction in patients on compounded GLP-1 treatments in the second half of 2025. In the Q&A, he added that "a lot of patients on compounded products will go to branded products" enabled by Novo's channels and collaborations, while President and CEO Lars Fruergaard Jørgensen said it was the "right moment" to make a serious change in the market and that this was "baked into" second-half guidance.

During this period, investors were told the company could capitalize on the size and potential of the GLP-1 market, with management expressing confidence in continued growth driven by Wegovy and Ozempic. These assurances, according to the complaint, presented a picture of imminent patient migration from compounded products and ongoing market expansion supporting the 2025 outlook.

The complaint alleges that, in reality, defendants understated the ongoing impact of the personalization exception to the compounded GLP-1 exclusion, overstated the likelihood that patients would switch to Novo's branded alternatives, and overstated the GLP-1 market's expansion or Novo's ability to penetrate it to achieve continued growth.

The Truth Emerges

On July 29, 2025, Novo issued a press release and held a conference call lowering its sales and profit outlook for 2025, citing "lowered growth expectations for the second half of 2025" for both Wegovy and Ozempic due to "the persistent use of compounded GLP-1s, slower-than-expected market expansion and competition." Management also noted that despite the expiry of the FDA grace period for mass compounding on May 22, 2025, company research showed that unsafe and unlawful mass compounding continued.

That same day, CFO Karsten Munk Knudsen admitted that the assumption announced in May—expecting compounded users to transition—had not materialized, stating that market research still indicated 1 million or more patients remained on compounded GLP-1s for obesity in the U.S. Meanwhile, David S. Moore said Ozempic total prescriptions were "flattish" and that patients were switching from Ozempic to a competitor, comments that contrasted with the company's broader second-half expectations communicated in May.

Market Reaction

As the company cut its outlook on July 29, 2025, the stock fell from a prior close of $69.00 per share on July 28 to $53.94 per share on July 29, a one-day decline of about 21.83%. The drop followed the company's acknowledgment that key assumptions underpinning its 2025 guidance—patient migration away from compounded GLP-1s and faster market expansion—had not occurred.

Next Steps

• Submissions for lead plaintiff are due September 30, 2025.
• The Court will decide motions for appointment of lead plaintiff and approval of lead counsel in the weeks after submissions are due.
• Plaintiff seeks class certification under Rule 23, and the Court may consider a motion for class certification later in the case.
• If defendants file a motion to dismiss, the Court will consider it in due course.

To learn if you are eligible for recovery under the NVO securities class action lawsuit, visit the case submission page here.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.