Novo Nordisk (NYSE:NVO) has agreed in principle to settle securities class action litigation in the Federal District Court of New Jersey. The Bagsværd, Denmark–based company would pay $100 million in the settlement.
That amount includes plaintiffs’ attorneys’ fees, expenses and settlement costs.
The lawsuit alleged that the company made misleading statements regarding the price of its insulin.
The agreement contains no admission of liability or wrongdoing. The company stressed in a statement that it believes the “plaintiffs’ claims are without any merit.”
“While we are confident in the facts and merits of our position, we believe that resolving this matter is the right business decision for Novo Nordisk and our shareholders,” said Tomas Haagen, general counsel at Novo Nordisk.
Purchasers of American Depository Receipts initially filed the lawsuit in 2017.
Novo Nordisk, along with Eli Lilly and Sanofi-Aventis, has faced litigation over their insulin pricing. In July, U.S. District Judge Brian Martinotti for the District of New Jersey dismissed antitrust claims targeting the three companies but denied motions to dismiss claims under the Racketeer Influenced and Corrupt Organizations Act.
The company has stressed its commitment to fair insulin pricing in recent years. In June, Walmart announced that its partnership with Novo Nordisk enabled it to launch the first private label analog insulin.
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