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Published February 27, 2025
Investors in GSK got heartburn when they discovered the pharmaceutical giant might be on the hook for billions in a lawsuit about its drug Zantac. Stunned investors quickly dumped their GSK shares, causing GSK’s price to drop 13% in less than a week. Some of those investors have filed a class-action to recover their losses.
GSK manufactured Zantac, a best-selling heartburn drug. But, since at least 1983, GSK knew Zantac could cause cancer, but swept that evidence under the rug. GSK routinely denied Zantac caused cancer and claimed the drug was safe.
When Zantac users who developed cancer used GSK, the Company denied the allegations and said the science didn’t back it up. But, in 2022, Credit Suisse estimated GSK was probably liable for up to ten billion dollars.
Investors rapidly sold their shares on this news. Some of those investors are now joining the lawsuit.