Novo Nordisk agrees $100 million settlement of US securities class action litigation

Danish diabetes care giant Novo Nordisk (NOV: N) has reached an agreement in principle to settle the previously disclosed securities class action litigation pending in the Federal District Court of New Jersey, USA, with the company’s US traded shares dipping 1.6% to $100.63 on the news.

The lawsuit, alleging the company concealed a deal to pay kickbacks to pharmacy benefit managers to get its insulin drugs on stores' recommended product list, was filed in January 2017 on behalf of purchasers of American Depository Receipts during the class period February 3, 2015 to February 2, 2017 against Novo Nordisk itself, as well as former company executives Lars Rebien Sørensen, Jesper Brandgaard and Jakob Riis.

The settlement was reached after a voluntary mediation process and resolves claims brought by plaintiffs for alleged violations of US securities laws. The settlement contains no admission of liability, wrongdoing or responsibility by any of the defendants and will include a full release of all defendants in connection with the allegations made in the lawsuit. Novo Nordisk believes that the plaintiffs’ claims are without any merit, but is settling the lawsuit to avoid the burden, inherent risk and expense of further litigation.