Securities Law

Glaxo Faces Suits Over Diabetes Drug

Investors in GlaxoSmithKline have filed a lawsuit in New York federal court that claims the drug company misled them about the safety of a diabetes drug.

The suit says company officials failed to disclose that its tests showed Avandia was associated with a higher risk of heart attacks, the Wall Street Journal (sub. req.) reports.

Diabetes patients have also filed suit against the company claiming they suffered heart attacks because of the drug.

Glaxo denies the allegations and contends its drug is safe.

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