SAN FRANCISCO, July 2, 2020 /PRNewswire/ -- Hagens Berman urges longtime shareholders in Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) to submit their losses now. The firm is investigating whether Regeneron's directors breached their fiduciary duties.
Regeneron Pharmaceuticals (REGN) Shareholder Investigation:
The investigation focuses on whether Regeneron's directors breached their oversight duties by disregarding senior management's alleged violation of Medicare's anti-kickback laws.
Regeneron's Eylea drug treats macular degeneration, the leading cause of blindness in seniors. The pricey drug, which costs over $10,000 per year, has become Regeneron's flagship product. The federal government is among Eylea's greatest sources of revenue through Medicare.
On June 24, 2020, the DOJ sued Regeneron, accusing it of using a charity that helps cover Medicare patients' drug costs to facilitate illegal kickbacks for using Eylea. Following Eylea's launch in 2011, Regeneron allegedly began funneling millions of dollars through a patient assistance foundation to ensure Medicare patients would not have to make co-pays. From 2013 to 2014, when the scheme operated, Medicare paid $1.9 billion for Eylea.
The DOJ contends that Regeneron's conduct violated Medicare's anti-kickback statute, which prohibits "indirect" kickbacks to subsidize a Medicare drug's price. The DOJ alleges that senior management knew the conduct was illegal. In 2013, Regeneron's auditors twice inquired about the information Regeneron received from the foundation about Eylea. But both times, senior management lied, denying that the company received Eylea-specific data. In truth, Regeneron obtained regular Eylea-specific reports from the foundation and then used that data to correlate the company's payments to the foundation. Consequently, physicians prescribing Eylea neglected to consider its substantial cost, because they knew that the foundation would cover their patients' Medicare co-pays.
"We're focused on whether Regeneron's Board failed to monitor senior management, and if Regeneron has suffered resulting damages," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Regeneron and suffered losses, click here to discuss your legal rights with Hagens Berman.
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 [email protected].
About Hagens Berman
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Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP