Novo Nordisk (NVO) Faces Securities Class Action After Weight Loss Therapy Trial Data Disappoints, Analyst Questions Trial's Design

Core Viewpoint - Novo Nordisk A/S is facing a class-action lawsuit from investors alleging that the company misled them regarding the prospects of its experimental obesity drug, CagriSema [1][2] Group 1: Lawsuit Details - The class period for the lawsuit is from November 2, 2022, to December 19, 2024, with a lead plaintiff deadline set for March 25, 2025 [2] - The lawsuit, filed in the U.S. District Court for the District of New Jersey, accuses Novo Nordisk and certain executives of securities violations related to disclosures about the drug's Phase 3 trial, REDEFINE-1 [2][3] Group 2: Allegations Against Novo Nordisk - Plaintiffs claim that Novo Nordisk misrepresented the likelihood of CagriSema achieving at least 25% weight loss in the study, creating a "false impression" of reliable data while downplaying dosage tolerability concerns [3][4] - The lawsuit argues that the company's "repeated optimistic claims" about CagriSema's potential did not align with the actual results, and the trial's flexible protocol hindered accurate assessment of weight loss [4] Group 3: Impact on Stock Price - Following the announcement of the REDEFINE-1 trial results on December 20, 2024, Novo Nordisk's stock price dropped nearly 18%, indicating the alleged misrepresentations' impact on investors [5][6] - The trial results revealed that only 57.3% of patients on CagriSema were on the highest dose after 68 weeks, compared to 82.5% for cagrilintide and 70.2% for semaglutide [5]