Novo Nordisk lowers outlook, triggering a historic 20% plunge; shareholders initiate class action lawsuit

Novo Nordisk is facing a shareholder lawsuit due to a downward revision of its full-year revenue and operating profit growth expectations, citing resistance in the GLP-1 market as the reason for the downgrade. The company's American Depositary Receipts (ADR) plummeted over 20% last Tuesday, marking the most severe intraday drop for the stock since 1987. On July 28 (Friday), a group of Novo Nordisk (NVO) shareholders filed a proposed class action lawsuit against the Danish company in federal court in New Jersey, seeking to recover losses allegedly caused by securities fraud from May 7 to July 28, 2025. The plaintiffs allege that Novo Nordisk made overly optimistic statements during this period and disseminated false and misleading statements that exaggerated its growth potential while concealing significant adverse facts, ultimately leading to a stock price crash due to the lowered performance guidance, resulting in losses for shareholders