Allegations
The filed complaint alleges that Regeneron Pharmaceuticals, Inc. made materially false and/or misleading statements and/or failed to disclose that: (1) Regeneron paid credit card fees to distributors on the condition that distributors did not charge, one of the Company’s primary products, Eylea customers more to use a credit card; (2) these payments subsidized the prices that customers paid when using credit cards to purchase Eylea; (3) as a result, Regeneron offered a price concession that lowered Eylea’s selling price; (4) 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) as a result of the foregoing, Regeneron misleadingly boosted reported Eylea sales; (6) 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) 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.