NEW YORK, May 13, 2016 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential misconduct at Aegerion Pharmaceuticals, Inc. ("Aegerion" or the "Company") (NASDAQ: AEGR).
The investigation focuses on whether the Company's Board of Directors and/or its officers committed mismanagement and breached their fiduciary duties. On May 12, 2016, the Company filed a current report on Form 8-K and an accompanying press release announcing that it had reached preliminary agreements in principle with the Department of Justice ("DOJ") and the staff of the Securities and Exchange Commission ("SEC") regarding a settlement of ongoing investigations by these agencies into the Company's sales activities and disclosures related to its JUXTAPID® (lomitapide) capsules ("JUXTAPID") product.
In the Form 8-K, the Company stated that "under the terms of the preliminary agreement in principle with the DOJ, the Company would plead guilty to two misdemeanor misbranding violations of the Food, Drug and Cosmetic Act. The Company would separately enter into a five-year deferred prosecution agreement with regard to charges that the Company violated the Health Insurance Portability and Accountability Act and engaged in obstruction of justice relating to the REMS program. The preliminary agreement in principle with the DOJ also requires the Company to enter into a civil settlement agreement with the DOJ to resolve alleged violations of the False Claims Act. Additionally, the Company would enter into a non-monetary consent decree with the Food and Drug Administration prohibiting future violations of law and may have to enter into a corporate integrity agreement with the Department of Health and Human Services as part of any final settlement with the DOJ."
Additionally, "under the terms of the preliminary agreement in principle with the SEC staff, the SEC's Division of Enforcement will recommend that the SEC accept a settlement offer from the Company on a neither-admit-nor-deny basis that contains alleged negligent violations of Sections 17(a)(2) and (3) of the Securities Act of 1933, as amended, related to certain statements made by the Company in 2013 regarding the conversion rate of patients receiving JUXTAPID prescriptions, with remedies that include censure, an order prohibiting future violations of the securities laws and payment of a civil penalty."
Finally, the preliminary agreements provide for a consolidated monetary package includes payments to the DOJ and the SEC totaling approximately $40 million in the aggregate, payable over five years.
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If you currently own Aegerion stock and would like to discuss your legal rights, please visit www.faruqilaw.com/AEGR. You can also contact us by calling Stuart Guber toll free at (215) 277-5770 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Aegerion's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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