Monday, October 08, 2007

GSK - Avandia: accusations of fraud and deceit

A regional UK pension fund has been appointed to spearhead a US class action lawsuit against GlaxoSmithKline (GSK), accusing the pharmaceutical giant of misleading the market over its controversial diabetes pill Avandia.

Avon Pension Fund, which manages around £1 billion on behalf of public sector workers, was appointed “lead plaintiff” – a US term for the institution fronting a group lawsuit on behalf of other investors - over the weekend.

Although both private and public pension funds in the UK are showing an increasing interest in US class action lawsuits, it is rare for them to take such a prominent role.

In the GSK lawsuit - which accuses the group of “fraud” and “deceit” by withholding information about the risks of Avandia - Avon was competing with the North Yorkshire Pension Fund, for the role of lead plaintiff.

More at The Times

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