In re Novo Nordisk Securities Litigation
Novo Nordisk Securities Litigation
3:17-cv-00209-BRM-LHG

Frequently Asked Questions

 

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  • The District Court has certified the Litigation as a class action.  A class action is a lawsuit in which one or more individual(s) and/or entity(ies) sue an individual(s) and/or other entity or entities on behalf of all other people and/or entities who are allegedly in a similar position.  Collectively, the people and/or entities bringing the lawsuit are referred to as a “Class” and individually as “Class Members.”  In a class action, the court proceeding resolves certain issues, legal claims and/or defenses for all Class Members in one lawsuit, except for those who ask to be excluded from the Class (as discussed below).  If you or someone acting on your behalf purchased Novo ADRs between February 3, 2015 and February 2, 2017, inclusive (the “Class Period”), you may be a Class Member entitled to participate in any benefits that may eventually be obtained for the Class as a result of this Litigation.  This Notice explains the Litigation, who is included in the Class, the effect of participating in this class action and how to request exclusion from the Class.

    Please read this entire Notice carefully as this lawsuit will affect your legal rights with respect to your purchase(s) of Novo ADRs during the Class Period.

  • On January 11, 2017, an action alleging violation of the federal securities laws was filed against Defendants (Novo, Lars Rebien Sorenson, Jesper Brandgaard and Jakob Riis) in the District Court.  The District Court later appointed Central States, Southeast and Southwest Areas Pension Fund, Lehigh County Employees’ Retirement System, Oklahoma Firefighters Pension and Retirement System, Boston Retirement System and Employees’ Pension Plan of the City of Clearwater as Lead Plaintiffs, and then certified them as the Class Representatives.  Lead Plaintiffs allege in their Consolidated Complaint for Violation of the Federal Securities Laws, filed on August 4, 2017 in the above-referenced action (ECF No. 71) (the “Complaint”), that Defendants are liable because they materially misled Novo investors in violation of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5.  Novo is a pharmaceutical company focused on producing insulin and other diabetes treatments.  Throughout the Class Period, Novo ADRs traded on the New York Stock Exchange under the symbol “NVO.”  Lead Plaintiffs allege that during the Class Period, Defendants failed to disclose that Novo’s revenue and earnings metrics were inflated as a result of the unsustainable practice of increasing its list prices on its commodity-like insulin drugs and falsely stated that Novo’s products insulated it from the pricing pressures and other risks imposed on other manufacturers, and its product Tresiba would command premium pricing, which caused Novo’s ADRs to trade at artificially inflated prices.  Lead Plaintiffs further allege that the Company’s ADR price declined and members of the Class suffered damages when the true facts concerning Defendants’ misrepresentations and omissions about pricing for its insulin products were revealed.  Lead Plaintiffs seek to recover money damages for members of the Class.  


    Defendants moved to dismiss Lead Plaintiffs’ Complaint, and the District Court denied that motion in its entirety on August 16, 2018.  Defendants deny Lead Plaintiffs’ allegations that they knowingly, or otherwise, made any material misstatements or omitted any material information and assert that they have valid defenses to each of Lead Plaintiffs’ claims.  Defendants also deny that the prices of Novo ADRs were artificially inflated by reason of the alleged misrepresentations, omissions, or otherwise, during the Class Period, or that the conduct alleged caused any losses allegedly experienced by, or otherwise harmed, any member of the Class.  Defendants filed an answer to Lead Plaintiffs’ Complaint denying the allegations and asserting multiple defenses.  Litigation is ongoing.  The District Court has not set a trial date.


    The District Court has not ruled on the merits of Lead Plaintiffs’ claims or Defendants’ defenses.  Please note that this Notice does not describe all claims and defenses asserted by the parties.  The section entitled “How Do I Find Out More About This Lawsuit?” describes the process by which you can obtain additional information.


    On January 31, 2020, the District Court certified claims in this lawsuit for class action treatment to be pursued by Class Representatives on behalf of all persons who purchased Novo ADRs between February 3, 2015 and February 2, 2017, inclusive, and suffered loss as a result of Defendants’ violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934.  Excluded from the Class are: (i) Novo; (ii) any directors and officers of Novo during the Class Period and members of their immediate families; (iii) the subsidiaries, parents and affiliates of Novo; (iv) any firm, trust, corporation or other entity in which Novo has or had a controlling interest; and (v) the legal representatives, heirs, successors and assigns of any such excluded party.


    On March 17, 2020, the United States Court of Appeals for the Third Circuit denied Defendants’ petition for permission to appeal from the order certifying the Class.  The District Court’s order certifying the Class does not guarantee that Class Members will receive money or benefits; that will be decided later in the lawsuit.  In certifying this case as a class action, the District Court made no decision as to the merits of Lead Plaintiffs’ or the Class’s claims or Defendants’ defenses.


    Please note that the District Court’s order certifying the Class may later be changed after the parties exchange evidence and the District Court rules on various legal matters.  Unless the District Court rescinds its order certifying the Class, all orders and judgments entered by the District Court, whether favorable or not to the Class, will be binding on any Class Members who do not opt out or exclude themselves.  See p.5 of the Notice for further discussion.

     

  • According to the District Court’s order, you are a Class Member if you fit this description:

    All persons or entities who purchased the American Depository Receipts of Novo Nordisk A/S between February 3, 2015 and February 2, 2017, inclusive, and who were damaged thereby. Excluded from the Class are: (i) Novo; (ii) any directors and officers of Novo during the Class Period and members of their immediate families; (iii) the subsidiaries, parents and affiliates of Novo; (iv) any firm, trust, corporation or other entity in which Novo has or had a controlling interest; and (v) the legal representatives, heirs, successors and assigns of any such excluded party.

    If you are a Class Member, you must decide either to stay in this lawsuit or exclude yourself, as described below. You may enter an appearance through your own attorney at your own expense if you so desire. If you are a legal representative for a deceased’s estate or an individual who is no longer in charge of his or her own financial matters, and you believe they fall within this definition, read this Notice carefully to decide what steps to take on their behalf.

  • If you are a Class Member, you have a right to stay in the case as a Class Member or be excluded from the lawsuit.  You have to decide this very soon.


    Option 1.  Do Nothing.  Stay in the Lawsuit.

    You have the right to stay in the lawsuit as a Class Member and await the outcome of the case.  You need to do nothing if you wish to remain in this lawsuit.  It will cost you nothing.  If you decide to stay in the lawsuit as a Class Member, you will be bound by all orders, judgments and decisions of the District Court, whether favorable or unfavorable to the Class.  At the end of the case, you may receive money or other benefits as may be awarded as a result of a trial or as a result of a settlement reached between Lead Plaintiffs and Defendants, or you may receive nothing.

    If you stay in the case, Lead Plaintiffs will pursue the claims and remedies on your behalf.  There is no guarantee that Lead Plaintiffs will be successful with their claims and/or win the lawsuit at trial or earlier or later.  If the Class is awarded money or benefits, you will be notified about how to make a claim for your share, if any.  While this Notice is not intended to suggest any likelihood that members of the Class will recover any money, should there be a recovery, Class Members will be required to submit a claim form demonstrating their membership in the Class and documenting their sales, purchases and/or holdings of Novo ADRs.  For this reason, please be sure to keep all records of your transactions and holdings in Novo ADRs.  DO NOT mail them to Class Counsel or the Notice Administrator at this time.

    The District Court has appointed Lead Plaintiffs Central States, Southeast and Southwest Areas Pension Fund, Lehigh County Employees’ Retirement System, Oklahoma Firefighters Pension and Retirement System, Boston Retirement System and Employees’ Pension Plan of the City of Clearwater to be the Class Representatives and provide evidence on behalf of you and other Class Members.  The District Court has also appointed the following law firms as Class Counsel for those Class Members who stay in the lawsuit:

     

    ROBBINS GELLER RUDMAN
    & DOWD LLP
    655 West Broadway, Suite 1900
    San Diego, CA 92101
    www.rgrdlaw.com
    1-800-449-4900
     

    BERNSTEIN LITOWITZ BERGER
    & GROSSMANN LLP
    1251 Avenue of the Americas
    New York, NY 10020
    Philadelphia, PA 19102
    www.blbglaw.com
    1-800-380-8496
     

    More information is available about Class Counsel on the websites listed above.

    In the event that Lead Plaintiffs are successful through trial or settlement, Class Counsel will seek attorneys’ fees and expenses, which will be determined by the District Court. You will not be personally responsible for any fees, costs or expenses of Class Counsel relating to the prosecution of this lawsuit.

    Please keep in mind that if you do nothing now and stay in the lawsuit, you will give up your rights to sue Defendants separately in another lawsuit regarding legal claims that are, or could have been, part of this lawsuit, and your rights to recover in other lawsuits involving Defendants may be impacted. You also may forgo your right to pursue claims based on alternative legal theories in favor of the theories being pursued in this case. You waive your right to bring a separate lawsuit if you do not exclude yourself from this case.


    Option Option 2.  Exclude Yourself from the Lawsuit.

    Alternatively, you have the right to not be part of this lawsuit by excluding yourself or “opting out” of the Class.  If you wish to exclude yourself, you must do so on or before October 13, 2020, as described below.  Class Members will not have another opportunity to exclude themselves or otherwise opt out of this Litigation.  If you exclude yourself from the Class, you give up your right to receive any money or other benefits awarded in this case, and you will not be bound by any judgments or other orders of the District Court, whether favorable or unfavorable to you and/or the Class.  Additionally, if you exclude yourself from the Class, you will keep your rights, if any, to sue Defendants separately in another lawsuit and bring the same legal claims that are part of this lawsuit.  If you wish to pursue your own lawsuit, you will need to exclude yourself and hire and pay your own lawyer.  If you choose this option, you should be aware that your claims may be time barred.  You should seek legal advice to determine if your claims would be barred by the applicable statute of limitation or repose.

    Do not request exclusion if you wish to be a Class Member in this Litigation.

  • To exclude yourself from this lawsuit and/or preserve your right to bring a separate case, you must make a request to be excluded in writing and mail it to:

     

    Novo Nordisk Securities Litigation
    c/o JND Legal Administration
    P.O. Box 91154
    Seattle, WA 98111

    All requests for exclusion must be postmarked on or before October 13, 2020.

    Your request for exclusion must contain:

    1. The name of the lawsuit (In re Novo Nordisk Securities Litigation);

    2. Your full name;

    3. Your current address;

    4. A clear statement that you wish to be excluded, such as: “I request exclusion from the Class”;

    5. The number of Novo ADRs you purchased between February 3, 2015 and February 2, 2017, inclusive; and

    6. Your signature.

    Class Counsel will file your request for exclusion with the District Court.  If you are signing on behalf of a Class Member (such as an estate or incompetent person), as a legal representative, please include your full name and the basis for your authority.

    IF YOU DO NOT EXCLUDE YOURSELF BY THE DEADLINE ABOVE, YOU WILL REMAIN PART OF THE CLASS AND BE BOUND BY THE ORDERS OF THE DISTRICT COURT IN THIS LAWSUIT, INCLUDING FINAL JUDGMENT, WHETHER OR NOT IT IS FAVORABLE TO LEAD PLAINTIFFS AND YOU.

  • If you have any questions about the lawsuit or any matter raised in this Notice, please contact JND Legal Administration from the Contact Us page of this website or toll free at 1 (833) 674-0167.  You may also contact Class Counsel through their websites, listed on page 4 of the Notice.


    Complete copies of the documents filed in this lawsuit may be examined and copied at any time during regular office hours at the Clerk of the Court, United States District Court for the District of New Jersey, located at 402 East State Street, Trenton, NJ 08608 or for a fee at www.pacer.gov.

     

For More Information

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Mail

Novo Nordisk Securities Litigation
c/o JND Legal Administration
PO Box 91154
Seattle, WA 98111