Regeneron Pharmaceuticals, Inc. (REGN) Securities Class Action

The litigation is focused on the propriety of Regeneron’s statements about its compliance with applicable rules and regulations concerning its Medicare reimbursement claims, particularly with respect to its EYLEA product.

According to the complaint, Regeneron made false and misleading statements and failed to disclose that:

(1) Regeneron paid credit card fees to distributors on the condition that distributors did not charge EYLEA customers more to use a credit card;

(2) these payments subsidized the prices that customers paid when using credit cards to purchase EYLEA;

(3) as a result, Regeneron offered a price concession that lowered EYLEA’s selling price;

(4) because retina practices were sensitive to higher prices when using a credit card to purchase anti-VEGF medications, Regeneron’s price concessions provided a competitive advantage;

(5) as a result of the foregoing, Regeneron misleadingly boosted reported EYLEA sales; and

(6) by failing to report its credit card fees as price concessions, Regeneron overstated the average sales price (“ASP”) reported to federal agencies, thereby violating the False Claims Act.

On April 10, 2024, the Department of Justice announced that it sued Regeneron for False Claims Act violations. The DOJ alleged that Regeneron fraudulently inflated the Medicare reimbursement rates for EYLEA by knowingly submitting false reports to the Centers for Medicare and Medicaid Services that were based on ASP, without accounting for price concessions – namely, credit card processing fees that Regeneron paid to specialty drug distributors to benefit its customers. The DOJ further alleged that “[b]y purporting not to offer price concessions on Eylea, Regeneron could market Eylea’s stable ASP (and stable reimbursement) as a competitive advantage for retina practices when compared to [competitors].”

Then, on October 31, 2024, Regeneron announced financial results for Q3 2024 that included disappointing U.S. net sales for its EYLEA and EYLEA HD products. The company revealed that those sales increased just 3% compared to the year earlier period, blaming “the lower net selling price compared to the third quarter of 2023” and “anti-VEGF category pricing pressure.”  

This news drove the price of Regeneron shares down over 9% that day.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the REGN investigation about?

We are investigating whether Regeneron may have intentionally misled investors about the legality of its reported revenues.

WHAT SHOULD I DO?

I worked at REGN. What should I do?

If you were an employee of REGN, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in REGN, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any REGN investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.