Regeneron Pharmaceuticals, Inc. ("Regeneron" or the Company) is a biopharmaceutical company that discovers, develops and intends to commercialize therapeutic drugs for the treatment of serious medical conditions.

The original Complaint charges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between March 28, 2000 and March 30, 2003. During the Class Period, Regeneron initiated Phase II clinical trials for its diet drug AXOKINE for use in obese patients. The Complaint alleges that the Defendants claimed that AXOKINE would help patients lose weight better than a placebo over a year. However, more than two-thirds of the 1,467 patients on the medicine in the clinical trials developed antibodies to it after three months, which made the medicine less effective. Patients taking AXOKINE, including those who developed antibodies, lost an average 6.2 pounds, compared with 2.6 pounds for those on a placebo, which the Company admits is similar to results dieters get with already available pills. Before results were released, Defendants had led the public to believe that AXOKINE would have more than $500 million in annual sales. On March 31, 2003, Regeneron admitted AXOKINE lost effectiveness in about 70% of patients in a study. On this news, the biotechnology company's shares plunged 57%, a market cap loss of more than $500 million. However, even Defendants' admission was false, as, in fact, Defendants manipulated the results of the study. In truth, 73.5% of the patients developed antibodies to the drug. As a result of the Defendants' false statements, Regeneron's stock price traded at inflated levels during the Class Period, increasing to as high as $40 on December 18, 2000, whereby the Company and its top officers and directors sold more than $430 million worth of their own securities.

According to the Notice of Pendency of Class Action and Proposed Settlement dated September 9, 2005, a number of other Complaints were filed and the actions were subsequently consolidated by the Court under the caption In re Regeneron Pharmaceuticals, Inc. Securities Litigation, Civil Action No. 03 CV 3111 (RWS). On September 9, 2003, the Court appointed Sara and Joseph Katz, Terri D. Carroll, and Stanley D. Bazewicz as lead Plaintiffs. The Court also approved the law firms of Milberg Weiss Bershad Hynes & Lerach LLP (now known as Milberg Weiss Bershad & Schulman LLP) and Stull Stull & Brody as Plaintiffs’ co-lead Counsel. On November 1, 2003, lead Plaintiffs filed a Consolidated Amended Class Action Complaint (the “Complaint”). On December 23, 2003, the Defendants filed a motion to dismiss the Complaint, which was denied by the Court in its Opinion and Order filed February 3, 2005. On April 7, 2005, the Defendants served their Answer to the Complaint in which they denied all substantive allegations of wrongdoing and asserted a number of affirmative defenses. In March 2005, lead Plaintiffs and Defendants began pretrial discovery, which has included the exchange of initial disclosures and the production of documents from a number of non-parties, including investment analysts. On June 3, 2005, the parties submitted their dispute to private mediation before retired United States District Judge Nicholas H. Politan. At the conclusion of the mediation, the parties reached a preliminary agreement in principle on the terms of a settlement.

As summarized by the same Notice, a settlement fund in the amount of $4,700,000 has been established. The Court scheduled a Settlement Fairness Hearing on November 14, 2005, at the Daniel Patrick Moynihan United States Courthouse, New York, New York. At this hearing the Court considers whether the settlement is fair, reasonable and adequate. At the Settlement Fairness Hearing, the Court also will consider the proposed Plan of Allocation for the proceeds of the settlement and the motion of Plaintiffs’ co-lead Counsel for attorneys’ fees and reimbursement of expenses.

According to the Company’s Form 10-K for the fiscal year ended December 31, 2005, on November 14, 2005, the United States District Court for the Southern District of New York approved the terms of a settlement between Plaintiffs and Regeneron settling all claims against the Company in this lawsuit. The settlement requires no payment by the Company or any of the individual Defendants named in the lawsuit. The Company’s primary insurance carrier agreed to make the required payment under the settlement, the amount of which is immaterial to the Company. The settlement includes no admission of wrongdoing by Regeneron or any of the individual Defendants. Separately, the Plaintiffs and the individual Defendants named in the lawsuit entered into a Stipulation of Voluntary Dismissal, which dismissed all claims against the individuals with prejudice.