Regeneron Pharmaceuticals – Breach of Fiduciary Duties Investigation (REGN)
Kehoe Law Firm, P.C. is investigating whether certain executives or board members of Regeneron Pharmaceuticals, Inc. (“Regeneron”) (NASDAQ: REGN) breached their fiduciary duties and whether the company and its shareholders were harmed.
If you own Regeneron stock, you may have legal claims and be able to seek remedies for any misconduct by the company’s directors and officers.
To help us assess your legal options, please complete our securities questionnaire.
Alternatively, if you would like to discuss the investigation and your legal rights, click here to send us a message or contact Michael Yarnoff, Esq., at (215) 792-6676, Ext. 804, or by email at [email protected] or [email protected], for a free, no-obligation evaluation of your potential claims.
U.S. Department of Justice Sues Regeneron
On April 10, 2024, the United States Department of Justice (“DOJ”) announced it had filed a complaint under the False Claims Act (FCA) against Regeneron, a company which manufactures and sells Eylea, an anti-vascular endothelial growth factor inhibitor approved by the FDA to treat, among other conditions, neovascular Age-Related Macular Degeneration.
The DOJ complaint alleged that Regeneron fraudulently inflated Medicare reimbursement rates for Eylea by knowingly submitting false average sales price reports to the Centers for Medicare and Medicaid Services that excluded certain price concessions.
In particular, the DOJ alleged that Regeneron knowingly failed to report price concessions in the form of credit card processing fees Regeneron paid to specialty drug distributors to benefit its customers. According to the DOJ complaint, Regeneron paid these credit card fees so that distributors would accept credit cards for Eylea purchases while still charging a lower, cash price for the drug, and so that Regeneron’s customers — typically retina and ophthalmic practices — could receive credit card benefits for their purchases, such as “cash back” and other credit card rewards.
“The government alleges that Regeneron manipulated Medicare’s drug pricing process, by knowingly failing to report its payment of credit card processing fees as price concessions to its customers,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “By doing so, Regeneron greatly inflated the costs of its drug to Medicare over many years and enhanced its revenues. Falsely reported average sales prices cost the Medicare system hundreds of millions of dollars and we will make every effort to prevent such practices.”
Regeneron’s Q3 2024 Financial Results & Stock Drop
On the news of the DOJ lawsuit, Regeneron’s stock price dropped, and on October 31, 2024, Regeneron reported disappointing Q3 2024 financial results, reporting, among other things, that “[n]et product sales of EYLEA in the third quarter of 2024 were adversely impacted by a lower net selling price compared to the third quarter of 2023.”
Kehoe Law Firm, P.C. is a leading, multidisciplinary plaintiff-side class action law firm committed to protecting investors from securities fraud, breaches of fiduciary duty, and corporate misconduct. The firm’s partners have collectively served as Lead Counsel or Co-Lead Counsel in high-profile cases that have secured over $10 billion in recoveries for both institutional and individual investors.
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