GSK Reaches Settlement in Zantac Lawsuit: Billion-Dollar Settlement in Progress

The British pharmaceutical company GSK has made significant progress in its protracted legal battle in the United States. On Wednesday, agreements were reached with ten plaintiff law firms representing approximately 80,000 product liability lawsuits against GSK regarding the drug Zantac. These lawsuits account for an impressive 93 percent of all remaining cases related to Zantac (Ranitidine). GSK has agreed to pay up to $2.2 billion to settle the claims, provided certain eligibility and participation criteria are met. In July, a Delaware judge dismissed an appeal by GSK and other pharmaceutical companies to prevent the continuation of over 70,000 lawsuits alleging that the heartburn medication Zantac causes cancer. The affected law firms are recommending that their clients accept the settlement terms, which are expected to be fully implemented by the first half of 2025, with the terms themselves remaining confidential. In addition to the agreements before the state courts, GSK has agreed to a principal payment of $70 million to settle a separate qui tam complaint originally filed by Valisure. However, this agreement is still subject to final approval by the Department of Justice. Although these settlements have been reached, GSK has admitted no liability in either the state court cases or the qui tam matter. The company continues to maintain that scientific evidence does not support the claims that Ranitidine increases cancer risk. GSK sees these settlements as an opportunity to reduce long-term financial uncertainties and the potential for protracted litigation. Consequently, GSK plans to record a charge of £1.8 billion ($2.3 billion) in its financial statements for the third quarter of 2024. This charge is intended to cover the state court settlements, the qui tam settlement, and the remaining 7 percent of pending lawsuits.