Novo Nordisk Securities Class Action Gets Green Light

Novo Nordisk AS will face class action claims that its stock dropped when it was revealed it misrepresented the sales of its insulin drugs, after the District of New Jersey rejected challenges to five pension funds as class representatives.

The court certified a class of all persons and entities who purchased or acquired Novo American Depository Receipts between Feb. 3, 2015, and Feb. 2, 2017. An ADR is a certificate issued by a U.S. bank that represents shares in foreign stock.

The plaintiffs allege Novo falsely attributed its revenue and growth to its innovation, when it was actually the result ...