SAN DIEGO & WASHINGTON--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Vanda Pharmaceuticals Inc. (Nasdaq: VNDA) filed a class action complaint against the company for alleged violations of the Securities and Exchange Act of 1934 between November 4, 2015 through February 11, 2019. Vanda is a biopharmaceutical company that focuses on the development and commercialization of products for the treatment of central nervous system disorders.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/vanda-pharmaceuticals-feb-19/
Vanda Accused of Defrauding the Government
According to the complaint, Vanda owns and markets two drugs Fanapt and Hetlioz. Over the years, Vanda had repeatedly attested to its internal control over financial reporting and the disclosure of all fraud. However, it failed to disclose adverse facts pertaining to its business and operations that would result in increased scrutiny and legal troubles. In October 2018, the FDA found Vanda's website "false and misleading" and in violation of the Federal Food, Drug, and Cosmetic Act. The FDA raised its concerns with the promotional materials for its drugs, and sent Vanda a Warning Letter in response to the review. On this news, Vanda shares fell almost 10% over the next two trading days to close at $20.00 per share on October 24, 2018. In February 2019, Aurelius Value published a report that revealed a previous unreported qui tam complaint that disclosed Vanda's years of fraudulent promotion of Fanapt and Hetlioz and Vanda's scheme to defraud the government through fraudulent reimbursements. The whistleblower complaint further detailed Vanda's participation in a fraud involving doctors, falsification of documents in its internal systems, and the resignations of senior executives who refused to participate.
Vanda Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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