GlaxoSmithKline (GSK) is currently dealing with a significant lawsuit brought by a whistleblower. This lawsuit has the potential to result in major losses for the company.  

Valisure LLC,an independent Connecticut laboratory, alleges that the drugmaker intentionally hid cancer risks associated with Zantac, a popular gheartburn medication.

The lawsuit claims that this action defrauded the US government and taxpayers. 

GlaxoSmithKline Allegedly Concealed Zantac's Cancer Risks

An amended complaint filed on Monday alleges that GSK concealed the cancer risks associated with Zantac for a significant period of time, all while Medicare, Medicaid, and other US government health programs provided coverage for prescriptions of this antacid.

Numerous state lawsuits have been filed against major pharmaceutical companies by individuals who claim that their cancer was caused by Zantac contaminated with NDMA, a hazardous chemical identified by Valisure.

According to estimates from Bloomberg Intelligence, GSK could potentially face a cost of up to $1.2 billion.

A whistleblower suit has been filed by the lab, alleging potential fraud committed by the company. If the suit is successful, it aims to recover billions of dollars that the government paid for Zantac, in addition to imposing fines. 

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Zantac Lawsuits

According to Reuters, over 70,000 private lawsuits concerning Zantac are still pending in US courts as of this month.

Most cases are currently being heard in a Delaware state court, where a judge is considering whethert o allow the cases to move forward.

A trial concerning the potential connection between Zantac and cancer is currently underway in Chicago, with a possible conclusion expected by the end of the week.

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