GlaxoSmithKline PLC - Securities Class Action

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Copyright (c) 2001
Stanford Law School

GlaxoSmithKline PLC Conclusion: On September 04, 2008, a notice of appeal was filed by the Plaintiffs. On October 10, 2008, a mandate was made withdrawing the notice of appeal.

The Court appointed Avon as lead plaintiff, on October 5th, ahead of a group of competing German investors that had also sought to be appointed the lead plaintiffs. US securities law firm, Coughlin, Stoia, Geller, Rudman and Robbins LLP has been appointed lead counsel in the case. This is the first time that a UK local authority Pension Fund has been appointed lead plaintiff in a case against a UK listed company. On November 13, 2007, the plaintiffs filed an Amended Complaint. Defendants filed a motion to dismiss one month later, on December 13, 2007. After hearing arguments on the motion, the judge granted the request for dismissal and denied plaintiffs' request to replead, citing that "plaintiffs do not sufficiently plead scienter, and the statements plaintiffs identify as false and misleading are forward-looking statements and thus are not actionable." On May 28, 2008, the plaintiffs filed a Motion for Reconsideration on the Order on the Motion to Dismiss. On August 12, 2008, an Opinion And Order was made denying the Motion for Reconsideration on the Order on Motion to Dismiss, filed by the Plaintiffs.

The original Complaint alleges that during the Class Period defendants, GlaxoSmithKline PLC and certain of its officers, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by publicly issuing a series of false and misleading statements regarding Avandia, GSK's popular diabetes drug. In particular, the Complaint alleges that GSK failed to adequately disclose the fact that it had performed a meta-analysis (a pooled analysis of several clinical trials) related to Avandia which showed an increased risk of heart attacks. Preliminary results of this analysis were presented to the FDA in September 2005 and updated results were disclosed to the FDA in August 2006. However, the results of GSK's meta-analysis were never adequately disclosed to the investing public.

As alleged in the Complaint, on May 21, 2007, before the close of trading, the results of a meta-analysis on Avandia conducted by a doctor with the Cleveland Clinic was reported and published in the New England Journal of Medicine (the "Journal"). Similar to GSK's meta-analysis conducted in 2005 and 2006, the results of the meta-analysis published in the Journal revealed that Avandia increased the risk of heart attacks and possibly heart-related deaths. As a result of the reports regarding the meta-analysis, the price of GSK securities declined US$4.53 per share, or 7.8%, to close at US$53.18 per share, on unusually heavy trading volume.

On September 18, 2009, upon consideration of plaintiffs' arguments on appeal, the appellate court concluded that they are without merit. Accordingly, the judgment of the district court was affirmed.

INDUSTRY CLASSIFICATION:
SIC Code: 2834
Sector: Healthcare
Industry: Major Drugs

COMPANY/ISSUER NAME:	GlaxoSmithKline PLC
COMPANY/ISSUER TICKER:	GSK
COMPANY WEBSITE:	http://www.gsk.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Leon D. Borochoff, et al. v. GlaxoSmithKline PLC, et al.

COURT: S.D. New York	DOCKET NUMBER: 07-CV-05574
JUDGE NAME: Hon. Louis L. Stanton
DATE FILED: 06/11/2007	SOURCE: Notice of Filing
CLASS PERIOD START: 10/27/2005	CLASS PERIOD END: 05/21/2007
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Kaplan Fox & Kilsheimer, LLP (former New York, NY) 805 Third Avenue, 22nd Floor, New York, NY, 10022 (voice) 212.687.1980, (fax) 212.687.7714, info@kaplanfox.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violations of Federal Securities Laws - Jury Trial Demanded
Type: Complaint		Date on the document: 06/11/2007
Opinion and Order of Appointment
Type: Order		Date on the document: 10/05/2007
The City Of Tallahassee Pension Plan's Response To The Motion Of The German Investors Group For Reargument And Reconsideration Of The Court's October 5, 2007 Order
Type: Other		Date on the document: 11/08/2007
Memorandum Endorsement
Type: Memorandum		Date on the document: 11/27/2007

REFERENCE COMPLAINT

Leon D. Borochoff, et al. v. GlaxoSmithKline PLC, et al.

COURT: S.D. New York	DOCKET NUMBER: 07-CV-05574
JUDGE NAME: Hon. Louis L. Stanton
DATE FILED: 11/13/2007	SOURCE: Docket
CLASS PERIOD START: 10/27/2005	CLASS PERIOD END: 05/21/2007
TYPE OF COMPLAINT: Consolidated Complaint
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Coughlin Stoia Geller Rudman & Robbins LLP (Melville) 58 South Service Road, Suite 200, Melville, NY, 11747 (voice) 631.367.7100, (fax) 631.367.1173, info@csgrr.com/ Coughlin Stoia Geller Rudman & Robbins LLP (San Diego) 655 West Broadway, Suite 1900, San Diego, CA, 92101 (voice) 619.231.1058, (fax) 619.231.7423, info@csgrr.com/ _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE REFERENCE COMPLAINT
Amended Complaint for Violation of the Federal Securities Laws
Type: Complaint		Date on the document: 11/13/2007
Defendant's Motion To Dismiss Amended Complaint
Type: Motion		Date on the document: 12/13/2007
Opinion & Order
Type: Order		Date on the document: 5/9/2008
Judgment
Type: Order		Date on the document: 5/13/2008
Notice Of Motion For Reconsideration Of The Court's Opinion And Order, Dated May 9, 2008
Type: Notice		Date on the document: 5/28/2008
Opinion And Order
Type: Order		Date on the document: 8/8/2008
Notice Of Appeal
Type: Notice of Appeal		Date on the document: 8/25/2008
Notice Of Appeal
Type: Notice		Date on the document: 9/4/2008
Mandate from the U.S. Court of Appeals for the Second Circuit
Type: Other		Date on the document: 9/24/2008
Mandate from the U.S. Court of Appeals for the Second Circuit
Type: Order		Date on the document: 10/10/2008
U.S. District Court Civil Docket
Type: Docket		Date on the document: 10/10/2008

OTHER DOCUMENTS
Summary Order
Case Name and/or Number: Leon D. Borochoff, et al. v. GlaxoSmithKline PLC, et al.
Type: Order		Date on the document: 09/18/2009

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