Faruqi & Faruqi, LLP Launches Investigation into Regeneron Pharmaceuticals on Behalf of Shareholders

Investigation into Regeneron Pharmaceuticals by Faruqi & Faruqi, LLP

Faruqi & Faruqi, LLP, a prominent name in the field of securities law, has initiated an investigation concerning Regeneron Pharmaceuticals, Inc., particularly aimed at protecting the interests of investors who may have suffered substantial financial losses. This inquiry is part of a larger class action potentially implicating significant violations of federal securities laws by Regeneron.

Background of the Investigation

Faruqi & Faruqi reminds shareholders that if they have experienced losses exceeding $100,000 with Regeneron during the timeframe from November 2, 2023, to October 30, 2024, they may have the right to participate in the class action lawsuit. James (Josh) Wilson, a partner at the firm, is encouraging affected investors to reach out for discussions on their legal options.

The cornerstone of the allegations involves misleading statements made by Regeneron regarding their Eylea product, which is crucial for the treatment of eye diseases. Allegations suggest that Regeneron engaged in monetary practices that inflated sales figures while misleading stakeholders about the pricing mechanisms associated with Eylea. The investigation covers several critical aspects:

1. Credit Card Fee Payments: It has been alleged that Regeneron made undisclosed payments to distributors for credit card fees contingent on the agreements that distributors wouldn’t overcharge customers using these cards, which effectively lowered Eylea's selling price in an indirect manner.
2. False Reporting of Sales Figures: By not reporting these payments as price concessions, Regeneron reportedly overstated the Average Selling Price (ASP) of Eylea, misguiding both investors and federal agencies, hence violating the False Claims Act.
3. Competitive Advantages: The implications of the above actions provided Regeneron an unfair competitive edge against other anti-VEGF treatments available in the market.

Recent Developments

In a related sequence of events, on April 10, 2024, the U.S. Department of Justice filed a complaint against Regeneron, affirming that the company did not accurately report significant rebates provided to distributors. As a consequence, this inflated Eylea’s ASP, which subsequently impacted Medicare reimbursements negatively.

The timeline of events is particularly critical—after the DOJ's revelation, Regeneron’s stock experienced a notable decline of $31.50, equating to a 3.36% drop. This trend continued as the company disclosed their third-quarter earnings results on October 31, 2024, demonstrating weaker-than-anticipated sales and further exacerbating stock devaluation.

Implications for Investors

The designation of a lead plaintiff will be determined by the investor with the most substantial financial stake who will represent the interests of other members in the proposed class. Investors who choose not to take on this role will still retain their eligibility for potential recovery without repercussions.

Faruqi & Faruqi also emphasizes the importance of gathering information regarding Regeneron’s actions. They are appealing to whistleblowers, former employees, and any parties with insights into the situation to step forth. This information could be crucial for strengthening the case against the company.

Conclusion

For investors with a vested interest in the outcome of these developments, it is critical to remain informed and seek professional advice. The investigations spearheaded by Faruqi & Faruqi underscore the firm's commitment to shareholder advocacy and accountability within the pharmaceutical industry.

To gain further insights into the Regeneron Pharmaceuticals class action, interested parties are encouraged to visit www.faruqilaw.com/REGN or to directly contact Faruqi & Faruqi partner Josh Wilson.

By taking proactive measures, investors may secure their rights and potential recovery concerning the substantial impacts of Regeneron Pharmaceuticals’ business practices on their financial investments.