Novo Nordisk slumps 5.4% on U.S. price fixing lawsuit

Novo Nordisk A/S shares dropped 5.4% on Thursday after a U.S. law firm filed a class action lawsuit against the Danish pharmaceutical company on behalf of the Lehigh County Employees' Retirement System in Pennsylvania. The complaint, filed by Bernstein Litowitz Berger & Grossmann LLP, alleges Novo Nordisk "reported materially false and misleading earnings and forecasts in that they were inflated through the collusive price fixing of the company's insulin drugs." The complaint also alleges the drug maker "misrepresented and concealed the true extent of the pricing pressures it was experiencing from pharmacy benefit managers." Novo Nordisk is the world's largest insulin maker for the treatment of diabetes. The lawsuit covers the time between April 30, 2015 to Oct. 27, 2016.

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