UK - Avon pension fund could become lead plaintiff in a US class action lawsuit against GlaxoSmithKline.
The debacle flared up after a class action suit was filed in the United States District Court for the Southern District of New York against GlaxoSmithKline (GSK) for investors who purchased GSK securities between 27 October 2005 and 21 May 2007.
It is alleged that during this period, GSK issued a series of false and misleading statements regarding Avandia, its diabetes drug.
In particular, it was alleged that GSK failed to adequately disclose the fact that it had performed several clinical trials related to Avandia which showed an increased risk of heart attacks.
Regarding the case, a spokesperson for the £2bn Avon pension fund said its losses had been substantial.
In a statement GSK said it believed the results did not confirm a difference in the safety profile of Avandia.
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