A U.S. federal judge ruled Novo Nordisk must face a shareholder class-action lawsuit alleging securities fraud. The lawsuit, filed in the District of New Jersey, claims the Danish drugmaker misled investors regarding its experimental weight-loss and diabetes treatment, CagriSema.
Shareholders allege the company concealed that participants in the REDEFINE-1 trial could control their own dosages. This flexible protocol allegedly remained undisclosed while the company issued optimistic statements about the drug's potential.
The lawsuit claims these omissions artificially inflated the company's stock price. While the judge dismissed some claims, core allegations regarding trial protocols and drug tolerability will proceed.