GSK Reaches $2.2 Bln Settlement Over Zantac Liability Cases

(RTTNews) - GSK plc (GSK, GSK.L) announced that it has reached agreements with 10 plaintiff firms representing approximately 93% (around 80,000) of the Zantac (ranitidine) product liability cases pending in U.S. state courts.

As per the settlement agreements, GSK will pay up to $2.2 billion to resolve all U.S. state court product liability cases handled by the participating firms that meet specific eligibility and participation criteria.

The company noted that the plaintiff firms are unanimously recommending that their clients accept the terms of this settlement, which is expected to be fully implemented by the end of the first half of 2025. The details of the agreements are confidential.

Additionally, GSK has reached an agreement in principle to pay a total of $70 million to settle a Zantac qui tam complaint previously filed by Valisure, pending final approval from the Department of Justice.

GSK said it has not admitted any liability in either the State Courts Settlement or the Qui Tam Settlement agreement. GSK believes these settlements are in the best long-term interests of the company and its shareholders, as they alleviate significant financial uncertainty, risk, and distractions associated with ongoing litigation.

GSK anticipates recognizing an incremental charge of 1.8 billion pounds or $2.3 billion in its third quarter 2024 results related to the State Courts Settlement, the Qui Tam Settlement, and the remaining 7% of pending state court product liability cases, partially offset by expected reductions in future legal costs.

The costs of these settlements will be funded through existing resources, GSK said.