A class action lawsuit has been brought against AstraZeneca PLC, the biopharmaceutical firm headquartered in Cambridge, UK, and two of its executives. The lawsuit seeks compensation for alleged U.S. federal securities laws violations on behalf of all individuals and entities that purchased or otherwise acquired AstraZeneca securities between 23 February 2022 and 17 December 2024.
On 5 January, Bronstein, Gewirtz & Grossman reported that it had filed the lawsuit in the U.S. District Court for the Central District of California. The allegations state that AstraZeneca made materially false and misleading statements during the class period and failed to disclose its involvement in insurance fraud in China.
On 5 November 2024, AstraZeneca’s stock suddenly plummeted, resulting in a loss of 14 billion pounds in market value, following reports that several senior executives within its China division could be implicated in an insurance fraud investigation within the pharmaceutical sector.
That day, Yicai Global published an article entitled “AstraZeneca Insurance Fraud Involves Dozens of Senior Executives in China, Source Says.” The article reported that medical representatives from AstraZeneca were found to have fabricated prescriptions for the lung cancer medication Tagrisso, enabling patients to obtain it through their insurance plans.
In an effort to increase Tagrisso sales, employees created false positive genetic testing reports to deceive the health insurance fund and collaborated with genetic testing companies to misappropriate benefits. In the last three years, several instances of insurance fraud involving AstraZeneca have emerged in Shenzhen and the provinces of Fujian and Jiangxi. Regional managers, district managers, and even high-ranking executives have been implicated.
