#United States #New York #Pomerantz Law Firm #Regeneron Pharmaceuticals #Eylea

Pomerantz Law Firm Initiates Class Action Against Regeneron Pharmaceuticals

On February 25, 2025, Pomerantz LLP announced the commencement of a class action lawsuit against Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN), bringing to light allegations of securities fraud and questionable business practices. Investors who purchased shares of Regeneron during the designated class period are encouraged to reach out to Pomerantz for opportunities to participate as lead plaintiffs.

Background and Allegations

This legal action follows earlier scrutiny that Regeneron faced from the U.S. Department of Justice. In an announcement made on April 10, 2024, the DOJ accused Regeneron of violating the False Claims Act by not accurately reporting discount amounts provided to drug distributors. It was suggested that these undisclosed discount amounts led to inflated Average Sales Prices (ASP) for products like Eylea and Eylea HD, thereby boosting Medicare reimbursements unfairly.

The explosive allegations received significant attention, leading to a notable dip in Regeneron’s stock, which decreased by approximately $31.50 per share within two trading sessions, closing at about $904.70 on April 12, 2024.

Further complications arose when Regeneron reported disappointing financial results on October 31, 2024. The company's third-quarter figures indicated disappointing U.S. net sales for Eylea HD and Eylea. Specifically, the sales figures grew by only 3% compared to the preceding year, with Eylea HD sales reported at $392 million, falling short of consensus forecasts that ranged from $415 million to $425 million. Reports highlighted the adverse impacts of lower net selling prices contributing to these underwhelming results, amplifying concerns about the company’s market performance.

In the wake of this news, Regeneron’s stock further plunged by $84.59 per share, culminating in a price of $838.20 on the same day of the financial disclosure, marking a 9.2% decrease in market value.

Pomerantz Law Firm's Commitment

Pomerantz LLP, established over 85 years ago and with offices worldwide, is recognized as a leader in corporate litigation, particularly in securities class actions. Known for its strong advocacy for victims of corporate misconduct, it has achieved numerous multi-million dollar recoveries for class members in past cases. The firm is remaining vigilant in protecting the rights of investors who may have been misled by Regeneron's practices.

The filing of this class action arises from a concerted effort to hold Regeneron accountable for actions that allegedly manipulated market stability and investor trust. The law firm is reaching out to affected shareholders to participate in this important legal undertaking, with a deadline for appointing lead plaintiffs set for March 10, 2025.

Individuals wishing to join the class action are instructed to connect with Pomerantz LLP, including pertinent details such as contact information and the shares they have purchased to facilitate communications and documentation.

As the lawsuit unfolds, investors will be keenly watching developments in both the legal proceedings and Regeneron’s ongoing corporate performance, particularly its product sales and compliance with federal regulations.

Conclusion

The situation surrounding Regeneron is a critical reminder of the complexities within the pharmaceutical industry and the legal frameworks that govern it. Stakeholders are encouraged to stay informed as this class action represents a significant step towards regulatory accountability and corporate transparency in the health sector.