SAN FRANCISCO, Dec. 24, 2024 (GLOBE NEWSWIRE) — AstraZeneca, the British-Swedish pharmaceutical giant, is facing a securities class action lawsuit in the U.S. alleging the company misled investors about its business practices in China, a critical market that accounts for roughly 13% of its revenue.
Hagens Berman has opened an investigation and urges investors in AstraZeneca American Depositary Shares who suffered substantial losses to submit your losses now.
Class Period: Feb. 23, 2022 – Dec. 17, 2024
Lead Plaintiff Deadline: Feb. 21, 2025
Visit: www.hbsslaw.com/investor-fraud/azn
Contact the Firm Now: AZN@hbsslaw.com
844-916-0895
AstraZeneca (AZN) Securities Fraud Class Action:
The lawsuit, filed in the U.S. District Court for the Central District of California, claims AstraZeneca made false and misleading statements and omitted material information regarding the company’s exposure to legal and regulatory risks in China.
Specifically, the complaint alleges that AstraZeneca:
- Engaged in insurance fraud in China.
- Faced heightened legal exposure in China, culminating in the detention of Leon Wang, Executive Vice President International and AstraZeneca China President, by Chinese law enforcement authorities.
- Understated the significant legal and regulatory risks associated with its China operations.
- Failed to disclose that these issues could materially harm its business activities and financial performance in China.
The lawsuit highlights a series of events that began to unfold in late October 2024. On October 30th, AstraZeneca announced that Mr. Wang was cooperating with an ongoing investigation by Chinese authorities, without providing further details. This news sent AstraZeneca’s share price down by approximately 3%.
On November 5th, the Chinese business news outlet Yicai reported that dozens of AstraZeneca China executives had been implicated in the investigation, with some facing prison sentences exceeding 10 years. Yicai also cited an industry insider who attributed the company’s compliance issues to “extreme pressure” placed on sales representatives to meet ambitious sales targets. This news further impacted AstraZeneca’s stock price, causing a decline of around 7%.
On November 12th, AstraZeneca confirmed Mr. Wang’s detention and disclosed that the PRC investigation included allegations of medical insurance fraud, illegal drug importation, and personal information breaches.
More recently, on December 18th, the Financial Times reported that AstraZeneca executives anticipate a revenue decline in China due to the arrests of Mr. Wang and other senior executives. The report cited an AstraZeneca executive who stated that “doctors are unwilling to interact with our salespeople and prescribe our medicines” following the investigation. This news resulted in a nearly 4% drop in AstraZeneca’s share price.
“If the allegations are substantiated, we believe AstraZeneca failed to adequately disclose the company’s exposure for its operations in China,” said Reed Kathrein, an attorney leading the firm’s investigation.
If you invested in AstraZeneca and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the AstraZeneca investigation, read more »
Whistleblowers: Persons with non-public information regarding AstraZeneca should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email AZN@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
