#USA #New York #Securities Fraud #Pomerantz LLP #Regeneron Pharmaceuticals

Class Action Lawsuit Against Regeneron Pharmaceuticals: A Call for Investors

In a significant development in corporate accountability, Pomerantz LLP has filed a class action lawsuit against Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN). This legal action raises serious allegations of securities fraud and other misconduct involving the pharmaceutical giant. Investors who purchased shares of Regeneron during the class period are urged to take note and consider their options.

Overview of the Lawsuit

The class action lawsuit centers on claims that Regeneron and certain executives may have engaged in deceptive practices that misled investors regarding the company's financial health. The lawsuit's filing follows a series of troubling announcements and a previous complaint from the U.S. Department of Justice (DOJ) under the False Claims Act.

Background Context

In April 2024, the DOJ accused Regeneron of failing to report several million dollars in discounts provided to drug distributors through reimbursed credit card fees. This omission allegedly inflated the Average Sales Price (ASP) for Regeneron’s flagship products, Eylea and Eylea HD. By doing so, Regeneron may have inappropriately boosted Medicare reimbursements.

As a result of this news, the stock price for Regeneron took a sharp decline, dropping $31.50 per share over just two trading sessions, closing at $904.70. The ripple effects of this announcement posed immediate concerns for investors and raised questions about the company's claimed revenue and profit margins.

Financial Performance Under Scrutiny

Fast forward to October 31, 2024, when Regeneron disclosed its third-quarter financial results. The company reported that net sales in the U.S. for Eylea and Eylea HD were lagging, with only a 3% increase compared to the same quarter in the previous year. Notably, Eylea HD's quarterly sales were reported at just $392 million, significantly missing analysts' expectations that ranged from $415 million to $425 million.

These disappointing figures, coupled with a lower net selling price, resulted in a substantial drop in Regeneron’s stock price. The share value plummeted by $84.59 per share, or approximately 9.2%, closing at $838.20. Such a rapid decline has prompted Pomerantz to act on behalf of investors, seeking justice and compensation for potential losses stemming from these alleged malpractices.

Role of Pomerantz LLP

Recognized as a leading law firm specializing in corporate and securities class litigation, Pomerantz has a track record of championing the rights of investors. Founded over 85 years ago by Abraham L. Pomerantz, the firm has established itself as a formidable force in the area of securities class actions. Pomerantz's commitment to advocating for victims of fraud and corporate wrongdoing could pave the way for substantial compensation for investors affected by Regeneron’s alleged misconduct.

Next Steps for Investors

Investors who have acquired Regeneron securities during the defined class period have until March 10, 2025, to file a request with the court to be appointed as Lead Plaintiff. Interested parties should contact Danielle Peyton at Pomerantz LLP via email or phone and are encouraged to provide their contact information and details about their stock purchases.

Conclusion

As the legal proceedings continue, the unfolding events serve as a reminder of the need for transparency in corporate communications and accountability in financial reporting. The outcome of this class action lawsuit could establish significant precedents within the pharmaceutical industry, influencing how companies navigate investor relations and regulatory compliance in the future.

For more information about joining the class action, visit www.pomerantzlaw.com.