GSK Settles Majority of Zantac Cancer Lawsuits for Up to $2.2 Billion

GlaxoSmithKline (GSK) has agreed to pay up to $2.2 billion to settle the majority of lawsuits in U.S. state courts alleging that its discontinued heartburn drug, Zantac, caused cancer. The settlement, reached with ten plaintiffs’ law firms, resolves approximately 80,000 cases, representing 93% of the Zantac cases pending against GSK in state courts across the country.

The settlement also includes a $70 million payment to resolve a related whistleblower lawsuit.

Zantac, first approved by U.S. regulators in 1983, was a blockbuster drug, becoming the world’s best-selling medicine in 1988 and one of the first to achieve $1 billion in annual sales. It was sold by various pharmaceutical companies over the years, including GSK, Pfizer, Sanofi, and Boehringer Ingelheim.

Lawsuits against these companies began mounting after the U.S. Food and Drug Administration (FDA) requested that Zantac be removed from the market in 2020 due to concerns that its active ingredient, ranitidine, could degrade into NDMA, a known carcinogen.

While GSK maintains that there is no reliable evidence linking ranitidine to cancer, the company has opted for a settlement to avoid the ongoing risks and costs associated with protracted litigation.

“We believe that settling these claims is in the best long-term interest of the company,” GSK stated, emphasizing that the decision does not constitute an admission of wrongdoing.

The attorneys representing the plaintiffs expressed satisfaction with the settlement, stating that it will provide “meaningful compensation” to individuals who have been harmed. However, they have vowed to continue pursuing claims against Boehringer Ingelheim, which has not reached a major settlement agreement and is currently facing a trial in California.

Pfizer and Sanofi have previously settled most of the Zantac cases filed against them in state courts.

Key Takeaways:

• GSK has agreed to pay up to $2.2 billion to settle most of the Zantac cancer lawsuits filed against it in U.S. state courts.
• The settlement resolves approximately 80,000 cases but does not include an admission of wrongdoing by GSK.
• The company maintains that there is no reliable evidence linking Zantac to cancer but chose to settle to avoid further litigation.
• Lawsuits against Boehringer Ingelheim, another former seller of Zantac, are ongoing.

This significant settlement highlights the complex legal and financial challenges faced by pharmaceutical companies in product liability cases, particularly when dealing with allegations of long-term health risks associated with their products. While GSK has opted for a settlement in this instance, the ongoing litigation against Boehringer Ingelheim suggests that the legal battles over Zantac are far from over.