SAN DIEGO & WASHINGTON--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that it is investigating the officers and directors of Vanda Pharmaceuticals Inc. (NASDAQ: VNDA) for breaches of fiduciary duties, unjust enrichment, and violations of the Securities Exchange Act of 1934. Vanda Pharmaceuticals Inc. is a biopharmaceutical company that focuses on the development and commercialization of products for the treatment of central nervous system disorders.
If you suffered a loss as a result of Vanda's misconduct, click here.
Vanda Pharmaceuticals Used its Drugs for Off-Label Purposes
For years, Vanda and its officers hid that Vanda was involved in a fraudulent scheme that included violations of federal Medicare, Medicaid, and Tricare programs and that Vanda's promotional materials were false and misleading, garnering scrutiny from the FDA. Specifically, Vanda schemed to promote its drugs Fanapt and Hetlioz for "off-label" uses in addition to other prohibited promotional strategies. Vanda's executives and officers knew about the prohibited promotional strategies and actively participated in the fraudulent activity. Vanda also issued misleading statements regard tradipitant's clinical trials with the FDA. When the truth was revealed, Vanda's stock declined over 5% and has slipped even more, now trading at just around $11.00. As a result of this conduct, Vanda is facing significant liability from a Qui Tam lawsuit and has already incurred substantial expenses in its investigation. Vanda has also been named as a defendant in a securities class action lawsuit, causing further damage to the company.
Vanda Pharmaceuticals Inc. (VNDA) Shareholders Have Legal Options
Robbins LLP is a nationally recognized leader in shareholder rights law. For be notified if a class action against Vanda Pharmaceuticals settles or to receive free alerts about companies engaged in wrongdoing, sign up for Stock Watch today.
Attorney Advertising. Past results do not guarantee a similar outcome.