Lawsuits against GSK began after the FDA requested the removal of Zantac from the market in 2020 due to concerns about its potential to degrade into a known carcinogen.

Additionally, GSK has agreed to pay $70 million to settle a whistleblower lawsuit filed by Valisure, pending approval from the U.S. Department of Justice.

GSK has agreed to pay $2.2 billion to settle around 80,000 lawsuits related to its discontinued heartburn medication, Zantac, which has been linked to cancer.

The settlement, announced recently, is part of a broader agreement totaling nearly $2.3 billion to resolve most ongoing lawsuits concerning Zantac.

This settlement resolves approximately 93% of the pending lawsuits against GSK in the United States, addressing claims that Zantac caused harm to users.

Despite the settlements, GSK maintains that it has not admitted any liability and asserts there is no consistent evidence linking Zantac to an increased cancer risk.

Plaintiff law firms have recommended that their clients accept the settlement terms, which are expected to be implemented by mid-2025.

GSK believes these settlements align with its long-term strategy, alleviating financial uncertainty and distractions from ongoing litigation.

To account for the settlements, GSK plans to recognize a charge of approximately $2.3 billion in its third-quarter 2024 financial results.

The costs associated with the settlements will be funded through existing resources, ensuring that GSK's growth and research plans remain unaffected.

Following the announcement of the settlement, GSK's shares rose by 6%, reflecting positive investor sentiment.

Analysts view this settlement as a significant step in resolving GSK's prolonged legal challenges, reducing investment risks associated with the company's stock.