AstraZeneca PLC (AZN) Securities Class Action

The lawsuit, filed in the U.S. District Court for the Central District of California, claims AstraZeneca made false and misleading statements and omitted material information regarding the company's exposure to legal and regulatory risks in China.

Specifically, the complaint alleges that AstraZeneca:

• Engaged in insurance fraud in China.
• Faced heightened legal exposure in China, culminating in the detention of Leon Wang, Executive Vice President International and AstraZeneca China President, by Chinese law enforcement authorities.  
• Understated the significant legal and regulatory risks associated with its China operations.
• Failed to disclose that these issues could materially harm its business activities and financial performance in China.

The lawsuit highlights a series of events that began to unfold in late October 2024. On October 30th, AstraZeneca announced that Mr. Wang was cooperating with an ongoing investigation by Chinese authorities, without providing further details. This news sent AstraZeneca's share price down by approximately 3%.

On November 5th, the Chinese business news outlet Yicai reported that dozens of AstraZeneca China executives had been implicated in the investigation, with some facing prison sentences exceeding 10 years. Yicai also cited an industry insider who attributed the company's compliance issues to "extreme pressure" placed on sales representatives to meet ambitious sales targets. This news further impacted AstraZeneca's stock price, causing a decline of around 7%.

On November 12th, AstraZeneca confirmed Mr. Wang's detention and disclosed that the PRC investigation included allegations of medical insurance fraud, illegal drug importation, and personal information breaches.

More recently, on December 18th, the Financial Times reported that AstraZeneca executives anticipate a revenue decline in China due to the arrests of Mr. Wang and other senior executives. The report cited an AstraZeneca executive who stated that "doctors are unwilling to interact with our salespeople and prescribe our medicines" following the investigation. This news resulted in a nearly 4% drop in AstraZeneca's share price.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the AZN investigation about?

The investigation is focused on the propriety of AstraZeneca’s business practices in China, which accounts for approximately 13% of the company’s revenue. We are investigating these matters to protect the interests of investors who may have been harmed by the company's actions

WHAT SHOULD I DO?

I worked at AZN. What should I do?

If you were an employee of AZN, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in AZN, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any AZN investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.