SAN FRANCISCO, Jan. 22, 2025 (GLOBE NEWSWIRE) — AstraZeneca (NASDAQ: AZN), the Anglo-Swedish pharmaceutical giant, has seen its stock price tumble 15 percent over the past six months, buffeted by a series of unsettling reports emanating from China. A widening investigation by China regulators into alleged illegal drug imports, data breaches, and potential health insurance fraud has cast a shadow over the company’s prospects in a critical market, triggering a securities class action lawsuit in the United States.
Hagens Berman has opened an investigation into the allegations 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
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844-916-0895
Probe Into AstraZeneca’s China Operations
The probe conducted by China regulators, which reportedly centers on allegations that AstraZeneca employees improperly imported cancer medications like Enhertu and Imjudo from Hong Kong into mainland China and mishandled patient data, has been compounded by a broader investigation into a large-scale health insurance fraud case. The confluence of these issues has raised serious concerns among investors about the potential impact on the company’s regional sales and overall financial performance.
The situation escalated with the arrest of Leon Wang, AstraZeneca’s Executive Vice President International and China President. This development, coupled with internal forecasts predicting a downturn in sales within the Chinese market, has prompted a sharp investor reaction, culminating in the legal action filed in the U.S. District Court for the Central District of California.
The AstraZeneca Securities Class Action Suit
The lawsuit alleges that AstraZeneca issued “false and misleading statements” and withheld crucial information regarding the company’s exposure to legal and regulatory risks in China. The complaint specifically accuses AstraZeneca of engaging in insurance fraud, facing heightened legal exposure that led to Mr. Wang’s detention, understating the risks associated with its Chinese operations, and failing to disclose the potential for these issues to significantly harm its business and finances in the region.
The truth allegedly began to emerge in late October. On October 30, AstraZeneca announced that Mr. Wang was cooperating with a Chinese investigation, offering few details. This initial announcement triggered a 3 percent drop in the company’s share price.
The situation worsened on November 5, when Yicai, a Chinese business news outlet, reported that dozens of AstraZeneca China executives were implicated in the investigation, with some potentially facing lengthy prison sentences. The report, citing an industry insider, attributed the alleged compliance issues to “extreme pressure” on sales representatives to meet aggressive sales targets. This news sent AstraZeneca’s stock down another 7 percent.
On November 12, AstraZeneca confirmed Mr. Wang’s detention and disclosed that the Chinese investigation encompassed allegations of medical insurance fraud, illegal drug importation, and breaches of personal information.
More recently, on December 18, The Financial Times reported that AstraZeneca executives anticipate a decline in Chinese revenue due to the arrests of Mr. Wang and other senior executives. The report quoted an AstraZeneca executive who stated that “doctors are unwilling to interact with our salespeople and prescribe our medicines” following the investigation, precipitating a further nearly 4 percent decline in the company’s share price.
Hagens Berman Investigation
These events have prompted shareholder rights firm to open an investigation in the allegations.
“Should the allegations be confirmed, it suggests AstraZeneca misled investors about the true extent of its exposure in China, a failure with potentially serious consequences,” 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
