Regeneron Executives Sued for Medicare Overbilling, Stock Drop

Regeneron Pharmaceuticals Inc.'s executives and board members overstated its key eye treatment’s average selling price, prompting a Department of Justice enforcement action and exposing the drugmaker to a proposed class action, a shareholder derivative lawsuit filed Thursday says.

The company’s reimbursing of credit processing card fees for drug distributors should’ve been deducted as a price concession when reporting Eylea’s ASP to the Centers for Medicare and Medicaid Services, said shareholder Nathan C. Silva in the complaint filed in the US District Court for the Southern District of New York.

By not doing so, executives led Regeneron to be sued by ...