AstraZeneca PLC

On October 30, 2024, AstraZeneca disclosed that its International Executive Vice President and China President, Leon Wang, was under investigation by Chinese Authorities. On this news, AstraZeneca’s stock price fell $4.07, or 5.4%, over two consecutive trading days to close at $71.15 per share on November 1, 2024, thereby injuring investors.

Then, on November 5, 2024, news outlets reported that a fraud investigation linked to AstraZeneca had expanded to several Chinese government agencies, implicating dozens of senior executives at the Company. On this news, AstraZeneca’s stock price fell $5.16, or 7.2%, to close at $66.27 per share on November 5, 2024.

Then, on December 18, 2024, Financial Times reported that Wang had been arrested and that AstraZeneca “expect[ed] to see an ‘evident’ revenue hit in China in the wake of the arrest,” stating that “the sales impact is already very evident.” On this news, AstraZeneca’s stock price fell $2.54, or 3.8%, to close at $64.64 per share on December 18, 2024, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) AstraZeneca engaged in insurance fraud in China; (2) as a result, AstraZeneca faced heightened legal exposure in China, which eventually resulted in the AstraZeneca China President being detained by Chinese law enforcement authorities; (3) as a result, AstraZeneca understated its legal risks; (4) the foregoing, once revealed, could materially harm AstraZeneca’s business activities in China; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.