Shareholders Sue Novo Nordisk Over Alleged Misrepresentation in Clinical Trial for Weight-Loss Drug
A U.S. judge has allowed parts of a lawsuit against Novo Nordisk (NVO) to proceed, with shareholders alleging the company misled investors about its next-generation weight-loss drug CagriSema. The case centers on claims that Novo did not adequately disclose details regarding dosing flexibility in the REDEFINE-1 trial before releasing results showing lower-than-expected average weight loss of 20.4%. Shareholders argue this impacted how well patients tolerated the treatment at higher doses, a key factor for obesity drugs. The ruling does not confirm securities fraud but allows claims about CagriSema's tolerability and clinical protocols to move forward in discovery. Novo Nordisk has denied wrongdoing and stated it will defend against these allegations vigorously. The company is under pressure as competition intensifies from Eli Lilly, particularly with its GLP-1 drugs. Following the December 2024 announcement of CagriSema's results, shares fell sharply—American depositary receipts dropped by nearly 18% in a single day.
Topics: CagriSema clinical trial lawsuit shareholder allegations