British pharmaceutical giant GSK has reached a confidential settlement in California to resolve yet another lawsuit alleging that its discontinued heartburn drug Zantac caused cancer. The settlement, made with Boyd/Steenvoord, comes amidst a series of similar agreements aimed at ending costly litigation for the company.
The case, slated for trial on April 2, will now be dismissed, with GSK emphasizing that it does not admit to any liability in this particular settlement. This settlement adds to a string of previous agreements since June of the previous year, several of which were also in California.
However, despite these settlements, GSK still faces thousands of lawsuits in California and Delaware in the United States. California, known for its plaintiff-friendly legal environment, poses particular challenges for multinational corporations navigating litigation.
The legal woes stem from the U.S. Food and Drug Administration’s decision in 2020 to withdraw all brands of Zantac and its generic versions from the market due to concerns about potential carcinogenic properties. This move triggered a flood of lawsuits against GSK.
Zantac, once a top-selling medication globally and a pioneer in exceeding $1 billion in annual sales, has become a focal point for legal battles following its removal from the market. Analysts had estimated potential settlement costs for GSK to be approximately $5 billion, though the company has yet to provide a definitive figure for these settlements. As litigation persists, GSK continues to navigate the legal landscape while addressing the financial implications of these ongoing legal challenges.
