According to the Complaint, Regeneron Pharmaceuticals, Inc. is a biotechnology company that designs products for eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, among others. One of the Company’s primary products is Eylea, an injection to treat age-related macular degeneration, among other conditions. In November 2011, the FDA approved Eylea as an antiVEGF inhibitor for wet age-related macular degeneration and, in August 2023, the FDA approved Eylea HD, a high dose version of Eylea. This class action was filed against Regeneron and three of its Officers.

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that Regeneron paid credit card fees to distributors on the condition that distributors did not charge Eylea customers more to use a credit card; (2) that these payments subsidized the prices that customers paid when using credit cards to purchase Eylea; (3) that, as a result, Regeneron offered a price concession that lowered Eylea’s selling price; (4) that, because retina practices were sensitive to higher prices when using credit cards to purchase anti-VEGF medications, Regeneron’s price concessions provided a competitive advantage; (5) that, as a result of the foregoing, Regeneron misleadingly boosted reported Eylea sales; (6) that, by failing to report its payment of credit card fees as price concessions, Regeneron overstated the ASP reported to federal agencies, thereby violating the False Claims Act; and (7) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.