Regeneron Pharmaceuticals (REGN) Faces Securities Class Action After Losing $9 Billion Value Following Q3 2024 Earnings Report- Hagens Berman

Regeneron Pharmaceuticals (REGN) Faces Securities Class Action After Losing $9 Billion Value Following Q3 2024 Earnings Report- Hagens Berman

SAN FRANCISCO, Jan. 9, 2025 /PRNewswire/ -- Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) faces a securities fraud class action after shares of the company plunged $84.59 on Oct. 31, 2024, wiping out about $9 billion of market value.

Hagens Berman has opened an investigation into whether Regeneron may have misled investors about its marketing and reimbursement practices related to its EYLEA® product, an injection to treat age-related macular degeneration by inhibiting anti vascular endothelial growth factor ("anti-VEGF"), and urges investors who purchased Regeneron shares and suffered substantial losses to submit your losses now.

Class Period: Nov. 2, 2023 – Oct. 30, 2024
Lead Plaintiff Deadline: Mar. 10, 2025
Visit: www.hbsslaw.com/investor-fraud/regn
Contact the Firm Now: REGN@hbsslaw.com
                                       844-916-0895

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.

"We are investigating whether Regeneron may have intentionally misled investors about the legality of its reported revenues," said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Regeneron and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »

If you'd like more information and answers to frequently asked questions about the Regeneron case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Regeneron should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new 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, call Reed Kathrein at 844-916-0895 or email REGN@hbsslaw.com.

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

View original content to download multimedia:https://www.prnewswire.com/news-releases/regeneron-pharmaceuticals-regn-faces-securities-class-action-after-losing-9-billion-value-following-q3-2024-earnings-report-hagens-berman-302347241.html

SOURCE Hagens Berman Sobol Shapiro LLP