NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Vanda Pharmaceuticals, Inc. ("Vanda" or the "Company")(NASDAQ:VNDA) of the April 26, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Vanda stock or options between November 4, 2015 and February 11, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/VNDA. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who purchased Vanda securities between November 4, 2015 and February 11, 2019 (the "Class Period"). The case, Gordon v. Vanda Pharmaceuticals Inc. et al., No. 19-cv-01108 was filed on February 25, 2019, and has been assigned to Judge Allyne R. Ross.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose 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; (4) Vanda’s promotional materials for Fanapt and Hetlioz were false and misleading, garnering regulatory scrutiny from the Food and Drug Administration.
On October 22, 2018, the FDA sent Vanda a Warning Letter which was addressed to Defendant Polymeropoulos. The Warning Letter was 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 Fanapt and Hetlioz and in violation of the Federal Food, Drug, and Cosmetic Act.
On this news, Vanda's share price fell from $22.00 per share on October 19, 2018 to a closing price of $20.00 on October 24, 2018: a $2.00 or a 9.09% drop.
On February 11, 2019, Aurelius Value published a report revealing a previous unreported qui tam lawsuit which disclosed Vanda’s years of fraudulent promotion of Fanapt and Hetlioz as well as Vanda’s scheme to defraud the government with fraudulent reimbursements.
On this news, Vanda's share price fell from $18.95 per share on February 8, 2019 to a closing price of $18.00 on February 11, 2019: a $0.95 or a 5.01% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Vanda's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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