SAN DIEGO & WASHINGTON–(BUSINESS WIRE)–Shareholder rights law firm Robbins LLP announces that Vanda Pharmaceuticals Inc. (NASDAQ: VNDA) may face damages caused by a pending securities lawsuit. Vanda Pharmaceuticals Inc. is a biopharmaceutical company that focuses on the development and commercialization of products for the treatment of central nervous system disorders.
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Shareholder Class Action Alleging Vanda Pharmaceuticals (VNDA) Made Materially False and Misleading Statements Survives Motion to Dismiss
According to the complaint filed in February 2019, between 2015 and 2019, 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. The complaint further alleges that Vanda’s executives and officers knew about the prohibited promotional strategies and actively participated in the fraudulent activity. When the truth was revealed, Vanda’s stock declined over 5%.
On March 10, 2021, U.S. District Judge Frederic Block denied Vanda and its CEO’s motion to dismiss the securities class action against, paving the way for litigation to proceed.
Vanda Pharmaceuticals Inc. (VNDA) Shareholders Have Legal Options
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