GSK (LSE: GSK) shares surged by 6% today following an out-of-court settlement related to its drug Zantac, which had been the subject of a long-running legal dispute regarding its potential link to cancer.
The pharmaceutical giant announced that it had reached an agreement with James Goetz, one of the claimants who alleged that Zantac caused cancer.
As a result of the settlement, the case filed by Goetz in California state court, which was scheduled to go to trial in July, will now be dismissed. The specific terms of the settlement were not disclosed.
The positive news of the settlement was well-received by shareholders, leading to a rally in the company’s stock, reaching 1,440p in early trading in London.
In a statement, GSK stated that the settlement was a reflection of its desire to avoid prolonged litigation and the associated distractions. However, the company made it clear that it does not accept any liability as part of this settlement.
