AstraZeneca’s stock price has plummeted 15% over the past six months due to concerns raised by Chinese regulators. The pharmaceutical giant is under investigation for alleged illegal drug imports, data breaches, and potential health insurance fraud. The probe involves AstraZeneca employees who allegedly imported cancer medications from Hong Kong into mainland China without proper authorization.
The situation escalated with the arrest of Leon Wang, AstraZeneca’s Executive Vice President International and China President. Internal forecasts predicted a downturn in sales within the Chinese market, prompting investors to react sharply. This has led to a securities class action lawsuit filed in the US District Court for the Central District of California.
The lawsuit alleges that AstraZeneca issued false statements, withheld crucial information, and engaged in insurance fraud. The company is accused of understating the risks associated with its Chinese operations and failing to disclose potential issues that could harm its business and finances.
Investors who suffered substantial losses are urged to contact Hagens Berman, a firm investigating the allegations. The investigation is ongoing, and the law firm is seeking information from those with non-public knowledge about AstraZeneca’s China operations.
Source: https://www.globenewswire.com/news-release/2024/12/27/3002299/0/en/AstraZeneca-AZN-Reels-from-China-Investigation-and-Investor-Suit-Hagens-Berman.html