#United States #Class Action #Philadelphia #Berger Montague #Regeneron

Introduction

A significant warning has been issued for investors in Regeneron Pharmaceuticals, Inc. as a securities fraud class action lawsuit has recently been initiated against the company. With the deadline for investors to make their move approaching on March 10, 2025, it is crucial to grasp the intricacies of this situation and how it may impact stakeholders.

What Happened?

On March 5, 2025, Berger Montague PC, a well-respected law firm, announced the filing of a securities class action lawsuit on behalf of individuals who purchased Regeneron securities from November 2, 2023, to October 30, 2024. During this period, investors may be eligible to act as lead plaintiffs and, if selected, guide the lawsuit on behalf of the entire class.

The impetus for this action arose following significant allegations made by the U.S. Department of Justice (DOJ) against Regeneron, which claimed that the company had violated the False Claims Act. Specifically, Regeneron allegedly failed to report significant discounts provided to drug distributors, leading to inflated average sales prices for its drugs, particularly Eylea, a well-known treatment for various eye diseases.

According to the DOJ, this misreporting resulted in inflated Medicare reimbursements, raising very serious concerns about the company's compliance with federal regulations. On the news breaking, Regeneron's stock price experienced a sharp decline of over 3%, dropping $31.50 within two trading days to close at $904.70 per share.

Financial Implications

The ramifications of these allegations were further compounded when, on October 31, 2024, Regeneron announced disappointing quarterly sales figures. Their report showcased only a 3% year-over-year increase, and with revenue from Eylea falling short of investor expectations—landing at $392 million against a consensus estimate of $415 million to $425 million—investor confidence wavered. The announcement led to a staggering drop of over 9% in the stock price, plummeting to $838.20 per share on the same day.

These developments have understandably raised alarm bells among investors, underscoring the need for prompt action by those affected.

Importance of Acting Now

For those who purchased Regeneron securities within the established period, it is imperative to act quickly if they wish to be considered as lead plaintiffs or participate in the class action lawsuit. Communicating with legal representatives is essential; however, it's worth noting that potential recoveries are not contingent upon the decision to take on the role of lead plaintiff. Any individual part of the broader class can choose to remain inactive while still being eligible for compensation.

About Berger Montague

Since its inception in 1970, Berger Montague has been a pioneer in the realm of securities class action litigation, assisting both individual and institutional investors across the United States. With offices located in several major cities, including Philadelphia and San Francisco, they have built a robust reputation for effectively championing the rights of investors.

Conclusion

The unfolding events surrounding Regeneron Pharmaceuticals highlight a crucial moment for current and prospective investors. As the March 10, 2025 deadline approaches, it is advised that affected investors prepare for necessary action to protect their interests. For further information or to express an intent to participate, individuals may reach out to Berger Montague's legal representatives directly.

Investors are encouraged to not only stay informed but also take proactive steps to safeguard their investments and assert their rights in this crucial period of legal action.