Shareholders accuse pharma of fraud

Novo Nordisk has been ordered to face allegations that it defrauded shareholders by withholding information about a clinical trial for its next-generation weight loss drug CagriSema.

US District Judge Robert Kirsch dismissed many of the plaintiffs’ claims last week but ruled that part of the case could move forward, finding that the shareholders had plausibly alleged that some of Novo’s statements about the drug’s trial design may have been misleading. 

The shareholders argued that Novo withheld information about the protocols used during the phase 3 REDEFINE 1 trial, causing them to buy shares “at artificially inflated prices”.