On April 10, 2024, the U.S. Department of Justice announced it had filed a complaint against Regeneron under the False Claims Act. According to the DOJ, the Company failed to report millions of dollars in discounts provided to drug distributors in the form of reimbursed credit card fees.

As a result, the DOJ alleges that the average sales price of Regeneron’s Eylea drug was inflated, which inappropriately increased Medicare reimbursements.

On this news, the price of Regeneron shares declined by $31.50, more than 3%, over the next two trading days to close at $904.70 per share on April 12, 2024.

Then, on October 31, 2024, Regeneron announced that in Q3 2024, the Company’s sales had only increased 3% year-over-year, with quarterly sales of Eylea only $392 million, missing consensus estimates of $415 million to $425 million. The Company also revealed that sales of Eylea were “adversely impacted by a lower net selling price compared to the third quarter of 2023.”

On this news, Regeneron’s stock price fell $84.59, or 9%, to close at $838.20 per share on October 31, 2024.

Investors who purchased or acquired Regeneron Pharmaceuticals securities between November 2, 2023 through October 30, 2024, may no later than March 10, 2025, seek to be appointed as a lead plaintiff representative of the class.