By Fineline Cube 
AstraZeneca plc (AZ, NASDAQ: AZN) is facing multiple class action lawsuits in the United States related to recent legal issues in China, including the arrest of its former China market president, Leon Wang. The lawsuits allege that the UK-based pharmaceutical giant made misleading statements about its operations in China, failing to disclose significant legal risks.
Lawsuit Details
The Financial Times reported that a securities class action lawsuit was filed in the US District Court for the Central District of California in December 2024. The suit claims AstraZeneca understated the legal risks in its China market in earlier financial reports. These risks were highlighted by the arrest of Leon Wang, with Chinese authorities investigating the company for alleged medical insurance fraud, illegal drug importation, and personal information breaches.
Financial Impact
Despite the investigations, AstraZeneca’s sales in China saw a 3% decline in Q4 2024, attributed to year-end hospital budget constraints and reduced demand for respiratory drugs. The company’s share price dropped nearly 20% at the end of 2024 following the allegations but has since recovered.-Fineline Info & Tech