RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Vanda Pharmaceuticals Inc. (“Vanda” or the “Company”) (NASDAQ: VNDA) between November 4, 2015 and February 11, 2019, inclusive (the “Class Period”).
Vanda shareholders may, no later than April 26, 2019, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Vanda and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The complaint alleges that throughout the class period defendants made false and/or misleading statements and/or failed to disclose that: (1) Vanda was engaged in a fraudulent scheme in which it 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; (4) Vanda’s promotional materials for Fanapt and Hetlioz were false and misleading, garnering regulatory scrutiny from the U.S. Food and Drug Administration; and (5) as a result, defendants’ statements about Vanda’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On October 22, 2018, the U.S. Food and Drug Administration (“FDA”) sent Vanda a Warning Letter, addressed to the Company’s founder and Chief Executive Officer, Mihael H. Polymeropoulos. The Warning Letter discussed the FDA’s review of Vanda’s website, which the FDA found “false and misleading” due to its failure to disclose risks associated with the Company’s products Fanapt and Hetlioz, and in violation of the Federal Food, Drug, and Cosmetic Act. On this news, Vanda’s stock price fell $2.00 per share, or over 9%, over the next two trading days, closing at $20.00 per share on October 24, 2018. Then, on February 11, 2019, Aurelius Value published a report entitled, “Vanda: In the Land of The Blind, The One-Eyed Man in King.” This report discussed a previously unreported qui tam lawsuit which alleged that Vanda had engaged in the fraudulent promotion of Fanapt and Hetlioz for years, and further alleged that Vanda had schemed to defraud the government with fraudulent reimbursements.
On this news, Vanda’s stock price fell $0.95 per share, or over 5%, to close at $18.00 per share on February 11, 2019.
If you are a member of the class, you may, no later than April 26, 2019, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.