VNDA.US
id: 335
The settlement funds have been distributed to claimants.
$11,500,000
Cash SettlementE.D. New York
Court11/04/2015
Class period Start02/11/2019
Class period End12/28/2022
Claim deadlineKenneth Gordon, et al. v. Vanda Pharmaceuticals Inc., et al.
Vanda Pharmaceuticals (VNDA) agreed to pay $11.5 million to settle a securities class action lawsuit accusing the Company of deceiving investors about user engagement in 2015.
The Complaint alleged the Company made false and/or misleading statements and/or failed to disclose that:
- Vanda was engaged in a fraudulent scheme in which it promoted the off-label use of Fanapt and Hetlioz;
- Vanda was fraudulently receiving drug reimbursements from the government by abusing Medicare, Medicaid, and Tricare programs;
- as a result of the scheme, Vanda faced legal action from the government;
- Vanda’s promotional materials for Fanapt and Hetlioz were false and misleading, garnering regulatory scrutiny from the U.S. Food and Drug Administration;
Vanda agreed to settle with investors to avoid further litigation.
Case Type
US Securities Class Action
Case Status
Disbursed
Alleged Offence
Other
Suspected Party
Other
Security Type
Stocks
Trade Direction
Long
Attorneys
The Rosen Law Firm, P.A.,Robbins Geller Rudman & Dowd LLP
Judge
Hon. Allyne R. Ross
Administrator
EPIQ
Trades matching type
FIFO
Disbursement date
05/31/2024