Details Emerge on Class Action Lawsuit Against Regeneron Pharmaceuticals for Securities Fraud

Class Action Lawsuit Filed Against Regeneron Pharmaceuticals

A significant securities class action lawsuit has been launched against Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) as reported on January 13, 2025. This lawsuit represents the interests of all investors who purchased or acquired securities from Regeneron during the period of November 2, 2023, to October 30, 2024. This is particularly crucial for those who may have been impacted by the alleged misconduct during that timeframe.

In April 2024, the U.S. Department of Justice (DOJ) revealed it had taken action against Regeneron under the False Claims Act. The DOJ's complaint highlighted that Regeneron failed to disclose millions of dollars in discounts that were indirectly offered to drug distributors through reimbursed credit card fees. As a consequence, the average sales price of Eylea, Regeneron's flagship drug, was allegedly inflated, leading to unjust increases in Medicare reimbursements.

Upon this revelation, Regeneron's stock saw a sharp decline; it dropped by over 3%, equating to a loss of $31.50, just two days following the announcement. The company’s stock closed at $904.70 per share on April 12, 2024, showcasing the immediate market response to the allegations.

The situation worsened for Regeneron on October 31, 2024, when the company reported a mere 3% increase in sales from the previous year for the third quarter of 2024. The quarterly sales for Eylea amounted to only $392 million, falling short of analysts’ consensus estimates that ranged between $415 million and $425 million. This disappointing financial performance further revealed that sales had been adversely affected by a decrease in the net selling price in comparison to the same quarter the previous year. As expected, this news led to another sharp decline in Regeneron’s stock price, which plummeted by $84.59, or 9%, closing at $838.20 per share the day of the announcement.

For investors who purchased Regeneron securities during the specified period, they have until March 10, 2025, to seek appointment as lead plaintiff representative. The lead plaintiff is a designated individual or group that acts on behalf of all class members in directing the litigation. Their role is crucial as they select legal counsel to represent the interests of the class in the proceedings.

If you believe that you have a stake in this case, it is essential not to hesitate in reaching out for additional information or assistance with your investment claims. Berger Montague, the legal firm representing aggrieved investors, has extensive experience in handling securities class action lawsuits and has been a pioneer in this legal domain since 1970. Their commitment to representing both individual and institutional investors is steadfast, and they are well-equipped to navigate the complexities of this litigation process.

Interested parties can contact Andrew Abramowitz or Peter Hamner at Berger Montague for further details regarding participation in this lawsuit. The law firm operates in several major cities across the U.S., including Philadelphia, Minneapolis, and San Diego, and is prepared to support investors in their quest for justice and recovery.

In conclusion, the unfolding events surrounding Regeneron Pharmaceuticals present a pivotal moment for investors under the alleged circumstances of securities fraud. As the lawsuit progresses, it will serve as a critical case study in corporate accountability and investor rights within the pharmaceutical industry.