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Novo Nordisk faces $1.8 billion lawsuit for 'misleading' claims about insulin sales in U.S.

Country : U.S.

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LONDON, 16 Aug (APM) - Novo Nordisk on Friday said it is facing an 11.8 billion Danish krone ($1.8 billion) lawsuit over claims it made misleading statements about its insulin products in the U.S.
The lawsuit is filed by a number of shareholders and regards the Danish diabetes specialist's actions between February 2015 and February 2017.
"The lawsuit alleges that Novo Nordisk made misleading statements and did not make appropriate disclosures regarding its sales of insulin products in the USA," said Novo in a statement.
It added the lawsuit appears to contain "broadly similar allegations" to those of the previously announced securities class-action lawsuit filed in the U.S. in 2017.
Novo said it disagrees with the allegations and is prepared to defend the company.
Thomson Reuters spoke to lawyer Thomas Ryhl, representing about 260 pension funds behind the lawsuit, who said Novo failed to tell the entire truth behind the company’s increased revenue in the U.S.
"They did, but they did it too late. What they said in 2016, they should have said already in 2014 and 2015," he told the news agency.
Rhyl said that Novo's revenues from insulin sales in the U.S. increased between 2015 and 2017 but so did rebates to pharmacy benefit managers in the same period.
This meant Novo's profits from its insulin sales actually dropped in that period despite the sales increase, he said.
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