Radtke v. Regeneron Pharmaceuticals, Inc. et al

On July 10, 2025, Labaton Keller Sucharow was appointed Co-Lead Counsel in a securities class action against Regeneron Pharmaceuticals, Inc. (Regeneron or the Company) and three of its executives, Leonard S. Schleifer, Christopher Fenimore, and Robert E. Landry (collectively, Defendants).  The lawsuit alleges violations of federal securities laws on behalf of all persons or entities that purchased or otherwise acquired Regeneron’s common stock between November 2, 2023, and October 30, 2024, inclusive (the Class Period).

Regeneron is a biotechnology company that develops and commercializes products for various medical conditions, including Eylea, an injection used to treat age-related macular degeneration and one of the Company’s primary products.  According to the Complaint, filed in January 2025, Regeneron’s self-reported Average Sales Price (ASP) of Eylea determines the availability and extent of reimbursements from third-party payors such as Medicare and Medicaid.

On April 10, 2024, the U.S. Department of Justice (DOJ) announced it had filed a complaint against the Company under the False Claims Act, alleging that Regeneron failed to report millions of dollars in discounts provided to drug distributors in the form of reimbursed credit card fees, artificially inflating Eylea’s average selling price, inappropriately increasing Medicare reimbursements, and allowing Eylea to gain a competitive advantage over other medications.  Upon news of the DOJ action, shares of Regeneron fell over 3%.  When the Company reported its third-quarter earnings in October 2024, they revealed that quarterly sales of Eylea products had missed consensus estimates.  Upon news of this, shares of Regeneron plummeted over 9%.

The Complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, and failed to disclose adverse facts about Regeneron’s business, operations, and prospects.  Specifically, the action alleges that Defendants failed to disclose (1) that the Company paid credit card fees to distributors on the condition that they 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 the product; (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, Regeneron’s price concessions provided a competitive advantage; (5) that, as a result, Regeneron misleadingly boosted reported Eylea sales; (6) that, by failing to report the payment of credit card fees as price concessions, Regeneron overstated the ASP, thereby violating the False Claims Act; and (7) that, as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

The case is Radtke v. Regeneron Pharmaceuticals, Inc. et al, 2025-cv-00145 (S.D.N.Y). Labaton Keller Sucharow represents the City Pension Fund for Firefighters and Police Officers in the City of Tampa.