Kenneth 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.