Regeneron's (REGN) Transparency Questioned as Investors Sue Over Eylea Pricing Practices– Hagens Berman

Core Viewpoint - Regeneron Pharmaceuticals is facing a securities class action lawsuit for allegedly misleading investors regarding its pricing practices for the drug Eylea, which may have provided the company with a competitive advantage in the market [1][2][3]. Group 1: Lawsuit Details - The lawsuit, filed in the Southern District of New York, targets investors who purchased Regeneron securities between November 2, 2023, and October 30, 2024 [1][2]. - The core allegation involves Regeneron's practice of paying credit card fees to distributors, which were not disclosed as price concessions, potentially lowering Eylea's selling price [2][3]. Group 2: Regulatory Involvement - The Department of Justice filed a complaint against Regeneron under the False Claims Act, claiming that the company inflated Eylea's Average Sales Price (ASP) by not reporting these payments, leading to increased Medicare reimbursements [3]. Group 3: Market Impact - Following the revelation of disappointing third-quarter results for Eylea on October 31, 2024, Regeneron's stock price fell over 9%, resulting in a loss of approximately $9 billion in market capitalization [4].