#United States #New York #class action lawsuit #Faruqi & Faruqi #Regeneron Pharmaceuticals

Investigation into Regeneron Pharmaceuticals: A Call to Shareholders

Faruqi & Faruqi, LLP, a well-respected national securities law firm, has initiated an investigation concerning possible claims against Regeneron Pharmaceuticals, Inc. As part of this investigation, the firm encourages investors who have incurred substantial losses—specifically, over $100,000 between November 2, 2023, and October 30, 2024—to contact them directly for guidance on their legal rights.

The deadline for those interested in becoming the lead plaintiff in a federal securities class action against Regeneron is set for March 10, 2025. This announcement highlights the urgency for shareholders who feel misled or have suffered losses due to the company's actions.

Background of the Investigation

The legal inquiry stems from serious allegations that Regeneron Pharmaceuticals and its executives failed to meet federal securities laws. Key accusations in the complaint suggest that executives failed to disclose crucial information, including:

• - Payments made by Regeneron to cover credit card fees for distributors, contingent upon those distributors not charging higher prices to Eylea customers.
• - These undisclosed payments are said to have effectively subsidized customer prices when purchasing the monoclonal antibody Eylea, leading to misleading reporting of the drug's sales figures.

Furthermore, these actions purportedly furnished Regeneron with a competitive edge over other anti-VEGF treatments, as retina practices were sensitive to pricing discrepancies. This resulted in the company overstating its sales figures and misinforming investors about its financial health.

On April 10, 2024, the situation escalated when the U.S. Department of Justice (DOJ) filed a complaint under the False Claims Act against Regeneron, claiming that the company's misrepresentation inflated the Average Selling Price (ASP) of Eylea. This misrepresentation inadvertently raised Medicare reimbursements, thus drawing further scrutiny.

In the wake of these revelations, Regeneron's stock price took a significant hit, dropping by 3.36% over a two-day trading period. Moreover, the disclosure of disappointing quarterly results on October 31, 2024, indicating lackluster sales growth of just 3% from the previous year, caused a further decline in share value by 9.2%.

The Role of Shareholders

Faruqi & Faruqi has emphasized the importance of shareholder activism in this case. The lead plaintiff serves as a representative for the investor class, responsible for steering the litigation. Shareholders can either petition the court to take on this role or remain as absent class members—no matter the choice, participation in any financial recovery is not contingent upon these decisions.

Shareholders with insights regarding Regeneron's practices, including whistleblowers, former employees, or investors, are encouraged to come forward to aid the investigation.

For further information and updates on the class action against Regeneron, interested investors can access resources available through Faruqi & Faruqi's dedicated website.

In conclusion, the ongoing investigation led by Faruqi & Faruqi underscores the critical intersection of corporate governance and shareholder rights. Investors are urged to be proactive and informed about their options as this significant case unfolds.