Pharma giant GSK to pay $2.2 to settle Zantac lawsuits

Published On Oct 9, 2024, 11:56 PM

GSK, a major UK pharmaceutical company, has agreed to pay up to $2.2 billion to settle approximately 80,000 lawsuits in the United States regarding claims that its heartburn medication, Zantac, caused cancer. The settlement will resolve 93% of the cases and includes $70 million for a whistleblower complaint alleging the company concealed cancer risks from the drug. While GSK has not admitted any wrongdoing, this move is intended to eliminate the financial uncertainty and distraction of ongoing litigation. Zantac was pulled from the market in 2020 due to safety concerns about a key ingredient that could become a cancer-causing substance when heated.

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The settlement shows GSK is taking proactive measures to stabilize its business amid legal challenges. By resolving a significant portion of the claims, GSK can focus on its core operations and potentially regain investor confidence. However, the large payout may affect short-term financial performance.

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