- Oops!Something went wrong.Please try again later.
The European Union has reportedly launched a new lawsuit against AstraZeneca plc (NASDAQ: AZN) that could lead to financial sanctions for the company, which the E.U. alleges has breached a supply contract for COVID-19 vaccines.
The lawsuit is the E.U.'s second against AstraZeneca after the bloc took action at the end of April over delayed vaccine supplies.
AstraZeneca has said the E.U.'s first legal action is without merit, saying that it complied with the contract, Reuters reported.
E.U. lawyer Rafael Jafferali, speaking in a Belgian court, asked AstraZeneca to deliver a total of 120 million vaccine doses by the end of June.
The company had initially committed to delivering 300 million vaccine doses from December to the end of June but has delayed shipments, having delivered only 50 million.
AstraZeneca aims to ship 100 million shots by mid-year, which the company's lawyer Hakim Boularbah confirmed.
Boularbah said AstraZeneca was not obliged to deliver the entire volume of doses set in the contract because it only committed to making its "best reasonable efforts" to achieve it.
The company has cited production problems and export restrictions as reasons for its delayed supplies to the E.U.
The E.U. lawyer also asked AstraZeneca to share confidential documents, a request which AstraZeneca opposes.
Price Action: AZN shares are trading 0.74% lower at $53.98 during the market trading session on the last check Tuesday.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.