#United States #New York #Pomerantz LLP #Regeneron Pharmaceuticals #Eylea

Legal Action Against Regeneron Pharmaceuticals

In a significant development, the renowned Pomerantz Law Firm has announced the initiation of a class action lawsuit against Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN). This lawsuit targets allegations of securities fraud and other unlawful practices linked to the company’s operations, specifically involving its flagship products, Eylea and Eylea HD.

The class action is focused on whether Regeneron, along with certain officers and directors, engaged in deceptive business practices that could have implications for investors. If you are an investor who has purchased or acquired securities of Regeneron during the specified class period, it is crucial to be aware of your rights. Those interested in joining the class action are encouraged to reach out to Danielle Peyton at the law firm.

Background Information

The lawsuit follows a complaint filed by the U.S. Department of Justice (DOJ) on April 10, 2024, which claimed that Regeneron had failed to disclose substantial discounts granted to drug distributors, specifically in the form of reimbursed credit card fees. This failure is alleged to have led to an inflated Average Sales Price (ASP) for Regeneron’s Eylea and Eylea HD products, consequently resulting in improper Medicare reimbursements. By covering credit card fees, Regeneron is accused of creating an unfair competitive advantage in an already competitive market for anti-vascular endothelial growth factor (VEGF) treatments.

In the wake of these revelations, Regeneron's stock price faced a notable decline, dropping $31.50 per share or 3.36% over two trading sessions. By April 12, 2024, the share value settled at $904.70, signalling investor concerns regarding the company’s financial integrity.

Financial Performance Reports

Further complicating matters, on October 31, 2024, Regeneron released its third quarter financial results, showcasing less than impressive U.S. net sales for its Eylea HD product line. With only a 3% increase in sales relative to the third quarter of 2023 and quarterly sales for Eylea HD reaching just $392 million—falling short of analyst estimates of between $415 million and $425 million—investors were left disappointed. The report underscored adverse impacts on net product sales attributed to a lower net selling price when compared to the previous year, casting a shadow over Regeneron’s anticipated growth trajectory.

In an immediate aftermath, Regeneron’s stock price took another hit. The shares plummeted by $84.59 per share—or 9.2%—to close at $838.20 on the very day the disappointing results were announced. This further decline raised alarms among investors and stakeholders regarding the future of the company’s financial health and business operations.

About Pomerantz LLP

Founded by the late Abraham L. Pomerantz, regarded as a pioneer in the field of class-action litigation, Pomerantz LLP has established itself as a leading firm in the domains of corporate, securities, and antitrust law. With over 85 years of experience, the firm has a storied history of championing the rights of investors affected by securities fraud and corporate malfeasance. Pomerantz continues to maintain its legacy by pursuing substantial settlements for affected class members.

As the investigation unfolds and the lawsuit progresses, it will be critical for affected investors to stay informed regarding their rights and options in this ongoing matter. Interested parties can visit pomerantzlaw.com for further details regarding the complaint and the class action process.