Company: Vanda Pharmaceuticals Inc.
Class Period: November 4, 2015 — February 11, 2019
Court: U.S.D.C. – Eastern District of New York
A shareholder class action complaint has been filed against Vanda Pharmaceuticals Inc. (“Vanda”) on behalf of investors who purchased shares of the Company’s stock between November 4, 2015 and February 11, 2019 (the “Class Period”).
The complaint alleges that the defendants made false and misleading statements and/or failed to disclose material adverse information to investors during the Class Period concerning the Company’s business, operations and financial prospects. Specifically, the defendants failed to disclose or indicate that: (1) Vanda was engaged in a fraudulent scheme in which the Company promoted the off-label use of Fanapt and Hetlioz; (2) Vanda was fraudulently receiving drug reimbursements from the government by abusing Medicare, Medicaid, and Tricare programs; (3) as a result of the scheme, Vanda faced legal action from the government; and (4) Vanda’s promotional materials for Fanapt and Hetlioz were false and misleading, garnering regulatory scrutiny from the FDA.
According to the complaint, on October 22, 2018, the U.S. Food and Drug Administration (“FDA”) sent Vanda a Warning Letter in response to the FDA’s review of Vanda’s website, which the FDA found “false and misleading” due to its failure to disclose risks of the certain drugs in violation of the Federal Food, Drug, and Cosmetic Act. Following this news, shares of the Company’s stock fell approximately 10% in value, over a two-day trading period, to close on October 24, 2018 at $20.00 per share.
Then, on February 11, 2019, Aurelius Value published a report revealing a previously unreported whistleblower lawsuit which disclosed Vanda’s years of fraudulent promotion of certain drugs, as well as Vanda’s scheme to defraud the government with fraudulent reimbursements. Following this news, shares of the Company’s stock fell an additional $0.95 per share, or over 5% in value, to close on February 11, 2019 at $18.00 per share.
Vanda stockholders who purchased or acquired shares of the Company’s stock prior to February 11, 2019 are encouraged to contact Kaskela Law LLC at (888) 715 – 1740, or by completing the information form on this page, for additional information about this action or to discuss their legal rights and options.