Regeneron Pharmaceuticals Faces Class Action Lawsuit Over Pricing Practices

SAN FRANCISCO, March 04, 2025 (GLOBE NEWSWIRE) -- Regeneron Pharmaceuticals, Inc. REGN is currently facing a significant challenge. The biotechnology giant is involved in a securities class action lawsuit that alleges the company misled investors regarding its pricing practices for its widely-used drug, Eylea. This lawsuit has been filed in the Southern District of New York, aiming to represent investors who purchased Regeneron securities between November 2, 2023, and October 30, 2024.

The law firm Hagens Berman is actively encouraging investors who bought shares of Regeneron and have incurred significant losses to come forward and report their losses as soon as possible.

The Nature of the Allegations

The core of this controversy revolves around Regeneron's alleged practice of paying credit card fees to distributors under the condition that these costs were not transferred to Eylea customers. This arrangement, according to the lawsuit, effectively reduced the selling price of Eylea and provided Regeneron with a competitive edge in the market for anti-VEGF medications.

Adding another layer to the case, the Department of Justice (DOJ) took action on April 10, 2024, by filing a complaint against Regeneron under the False Claims Act. The DOJ asserts that Regeneron failed to disclose these payments as price concessions, thus inflating Eylea's Average Sales Price (ASP). This inflation allegedly led to an increase in Medicare reimbursements.

The lawsuit further claims that Regeneron's actions resulted in inflated sales figures for Eylea and included materially false statements about the company's business outlook.

The Impact of the Allegations

This alleged scheme came to public attention on October 31, 2024, when Regeneron reported disappointing third-quarter results for both Eylea and Eylea HD. In the wake of these revelations, the stock price of Regeneron plunged by more than 9%, leading to a staggering loss of approximately $9 billion in market capitalization.

Hagens Berman, a prominent firm dedicated to protecting investor rights, is conducting an investigation to determine if Regeneron engaged in fraudulent practices that harmed its investors. In their view, the intersection of pharmaceutical pricing and securities law is intricate, but it is crucial for companies to be transparent about their business practices.

Inviting Investors to Take Action

If you've invested in Regeneron and experienced substantial losses, or if you possess information that could assist the investigation, it is advisable to submit your losses at this time. For those with non-public information regarding Regeneron, there are options available to help in the investigation or to take part in the SEC Whistleblower program, which offers rewards up to 30% of any successful recovery.

To inquire further or to seek additional information about the Regeneron case, investors can contact Reed Kathrein at 844-916-0895 or via email at [email protected].

About Hagens Berman

Hagens Berman is recognized as a leading global litigation firm focusing on corporate accountability and representing various stakeholders including investors and whistleblowers. The firm has achieved substantial outcomes in holding corporate entities accountable for negligence and wrongdoing, securing over $2.9 billion in claims.

lawsuit, investors, Regeneron