REGN Lawsuit Alert! Class Action Against Regeneron Pharmaceuticals, Inc.
A class action lawsuit was filed against Regeneron Pharmaceuticals, Inc. (REGN) by Levi & Korsinsky on January 7, 2025. The lawsuit accuses Regeneron shareholders of buying REGN stock at artificially inflated prices between November 2, 2023, and October 30, 2024 and now seeking compensation for their financial losses.
- Investors who bought Regeneron stock during this period are encouraged to join the lawsuit.
Regeneron Pharmaceuticals Overview
Regeneron Pharmaceuticals is a biotechnology company that focuses on developing life-transforming medicines. Their treatments are designed for serious diseases, including eye diseases, cancer, cardiovascular conditions, and neurological disorders.
- Eylea, a key product used for macular degeneration and certain cancer treatments, is at the center of the lawsuit.
- Eylea works as an inhibitor of vascular endothelial growth factor (VEGF), which helps prevent the formation of blood vessels necessary for tumor growth.
Regeneron Pharmaceuticals’ Misleading Claims
The lawsuit alleges that Regeneron and its senior officers made false statements about Eylea’s sales and related issues. The company is accused of withholding critical information in its SEC filings and public statements.
- Regeneron claimed Eylea net sales of $1.49 billion in the U.S. but failed to disclose practices that inflated those figures.
- The company also indicated that its business could face scrutiny from U.S. federal or state laws, potentially exposing it to criminal probes or penalties for illegal marketing practices.
The false information, according to the lawsuit, misled investors about the average selling prices (ASP) of Eylea and Eylea HD due to marketing practices like credit card reimbursements to boost sales.
Plaintiffs’ Arguments
The plaintiffs argue that the Defendants misled investors about illegal marketing practices and the company’s future prospects. The central accusation is that Regeneron used credit card rebates to inflate the selling prices of Eylea.
- In April 2024, the U.S. Department of Justice (DOJ) filed a complaint against Regeneron under the False Claims Act for offering these rebates to drug distributors, which artificially inflated the ASP of Eylea.
- These actions made Eylea more affordable for customers, giving it a competitive edge over other drugs.
The truth emerged in October 2024 when Regeneron’s Q3FY24 results showed lagging sales. The company began reporting the credit card rebates as price concessions, leading to a decline in net sales for Eylea and Eylea HD.
Stock Impact and Allegations
The lawsuit claims that the defendants misled investors about the true selling prices of Eylea and Eylea HD, leading to significant stock losses. REGN stock has dropped 27.8% in the past year due to the revelations of these deceptive practices.
- The allegations center on the DOJ complaint, which could further affect the company’s reputation and stock performance.
Investors who were impacted by the alleged misrepresentation of Regeneron’s financials may now seek compensation through the class action lawsuit.
