GlaxoSmithKline faces investor class-action lawsuit over Paxil

GlaxoSmithKline is facing a class-action lawsuit in the US, launched by shareholders who allege the company concealed problems with its antidepressant, Paxil, CNN Money and other news sources report.

The lawsuit was filed in the US District Court for the Southern District of New York, on behalf of investors who bought Glaxo stock between February 21, 2001 and August 5, 2004. The suit alleges that Glaxo "improperly concealed deficiencies" with Paxil, which is also sold as Seroxat. The suit further claims that the drugmaker made "false or misleading public statements" related to the antidepressant, as reported in the news sources.

The lawsuit follows studies that found an increase risk between Paxil and suicidal behaviour in adolescents. Glaxo, which has also been facing challenges to its patent for the drug, commented that allegations in the class-action suit were "without merit," BBC News reports.

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