#USA #New York #Class Action #Securities Fraud #Regeneron

Regeneron Pharmaceuticals Facing Legal Challenges

Introduction

A recent class action lawsuit has been initiated against Regeneron Pharmaceuticals, Inc. (ticker: REGN) by Pomerantz LLP, a law firm recognized for its expertise in securities class action litigation. The lawsuit accuses Regeneron and various executives of engaging in securities fraud and relates to significant financial discrepancies involving their leading drug products.

Background of the Case

On February 11, 2025, Pomerantz announced the filing of this class action, encouraging affected investors to make contact. Recent events have raised serious concerns about Regeneron’s financial integrity, particularly surrounding its blockbuster eye treatment, Eylea. The legal action challenges whether the company's executives misled the public regarding business practices that may have inflated prices and misrepresented revenue.

What Prompted the Lawsuit?

The U.S. Department of Justice (DOJ) filed a complaint against Regeneron in April 2024 under the False Claims Act. They alleged the company misreported millions in discounts tied to drug distributors, especially in reimbursed credit card fees, ultimately inflating the Average Sales Price (ASP) of Eylea and Eylea HD. This discrepancy led to inflated Medicare reimbursements, giving Regeneron an unfair competitive edge in the market.

Following the DOJ's announcement, Regeneron’s stock saw a sharp decline, falling $31.50 within two trading sessions, closing at $904.70 on April 12, 2024. This substantial drop highlighted the investors' growing concern over the integrity of Regeneron's financial reporting.

Sales Performance and Market Response

The situation worsened for Regeneron when they released their third quarter 2024 financial results on October 31, 2024. The company reported mediocre growth in sales, revealing that Eylea had only seen a 3% increase year-over-year, with net sales for Eylea HD falling short of market expectations. Subsequently, their stock plummeted another $84.59, representing a 9.2% drop to close at $838.20 a share.

This combination of legal troubles and disappointing financial performance has culminated into a precarious position for Regeneron in the market. Investors who acquired shares during this tumultuous period have until March 10, 2025, to file for lead plaintiff status in the class action.

Legal Background of Pomerantz LLP

Pomerantz LLP, with a rich history of over 85 years, is considered a pioneer in securities class actions, having secured numerous significant settlements for class members over the decades. They have proven success in championing the rights of investors who fall victim to corporate malfeasance. Their expertise has positioned them as a key player in this ongoing legal battle against Regeneron.

Conclusion

The allegations against Regeneron Pharmaceuticals stand as a critical reminder of the complexities within the pharmaceutical industry and the potential ramifications for both investors and the broader healthcare ecosystem. As this class action progresses, it raises critical questions about corporate governance, transparency in financial reporting, and the ethical responsibilities of pharmaceutical companies towards their shareholders and the public at large.

Investors are highly encouraged to stay informed about the developments in this case, particularly if they have a stake in Regeneron’s future. For those seeking more information or wanting to join the class action, visiting Pomerantz's website could be a crucial step towards understanding their legal rights and potential remedies.