Ongoing Legal Investigation of Regeneron Pharmaceuticals
Faruqi & Faruqi, LLP, a prominent national securities law firm, has initiated an investigation into potential claims against Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN). This inquiry arises in light of significant allegations regarding misleading financial practices and the potential inflation of the company's drug pricing strategies, particularly concerning its blockbuster drug, Eylea.
The investigation specifically looks into actions purportedly taken by Regeneron between November 2, 2023, and October 30, 2024. Investors who experienced losses exceeding $100,000 during this period are encouraged to reach out to Faruqi & Faruqi for consultations on their legal options. Notably, the deadline to seek lead plaintiff status in a federal securities class action is set for March 10, 2025.
Background of the Allegations
On April 10, 2024, the U.S. Department of Justice (DOJ) filed a complaint against Regeneron under the False Claims Act. The DOJ's allegations claim that Regeneron failed to disclose millions in discounts provided to drug distributors, specifically through reimbursed credit card fees, which they allegedly used to limit the charges faced by Eylea customers. This strategy is said to have created an artificial inflation of the average selling price (ASP) of the drug, consequently impacting Medicare reimbursements and giving Regeneron a competitive edge over rivals in the anti-VEGF treatment market.
As a result of these practices, Regeneron's stock faced a significant decline, dropping 3.36% within two trading days following the DOJ's announcement, and plummeting an additional 9.2% shortly after disappointing earnings were shared for the third quarter of 2024.
Investor Guidance and Next Steps
Investors who bought Regeneron's stocks during the specified timeframe are urged to consider taking action. James (Josh) Wilson, a partner at Faruqi & Faruqi, emphasizes the importance of prompt communication regarding the investigation and potential claims. Interested investors can contact him directly and explore their rights concerning the alleged securities violations.
It is essential for affected investors to understand that while participating as a lead plaintiff offers a degree of influence over the litigation, opting to remain an absent class member will not impact their ability to receive any recovery resulting from the litigation.
Faruqi & Faruqi, LLP has made it clear that they are also interested in gathering information from whistleblowers, former employees, and other stakeholders who may possess additional insights into the conduct of Regeneron Pharmaceuticals. This is an opportunity for individuals to contribute to the broader investigation and possibly aid in the recovery process for wounded investors.
Conclusion
With a storied reputation for recovering significant funds for investors since 1995, Faruqi & Faruqi continues its dedicated work in securities litigation. As the investigation unfolds, stakeholders are encouraged to stay informed about the developments regarding Regeneron and their business practices. For further information about the class action and ongoing updates, potential claimants can visit
Faruqi & Faruqi's website.
This legal inquiry highlights crucial events in the financial landscape of pharmaceuticals, reminding investors of the imperative to remain vigilant about the practices of companies in which they invest.