As part of my day job, I attend a lot of insurance conferences, including some in foreign venues. A frequent feature of these conferences is expert conjecture about areas of emerging liability risk. In recent years, one frequently discussed area of concern has been emerging liability issues arising from the use of GLP-1 drugs. Many readers will be familiar with the branded GLP-1 products such as Ozempic, for treatment of type 2 diabetes, and Wegovy, for weight loss treatment. There already are, in fact, growing numbers of product liability claims concerning GLP-1 drugs, as discussed below.  

I have long wondered whether D&O claims relating to GLP-1 drugs might also emerge. In an interesting development last week, plaintiff shareholders filed two separate GLP-1-related securities class action lawsuits against telehealth platform Hims & Hers Health, when the company’s share price plunged after Novo Nordisk, the manufacturer of Wegovy, pulled its agreement allowing Hims to distribute the drug on its platform. Although the allegations in the new lawsuits against Hims are arguably specific to Hims, the lawsuits nevertheless are securities suits relating to GLP-1 drugs. As discussed further below, I continue to believe that issues relating to GLP-1 drugs are a potential area of emerging D&O risk.  Continue Reading Thinking About GLP-1 Drugs and D&O Risk