SAN DIEGO & WASHINGTON -- (Business Wire)
Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Vanda Pharmaceuticals Inc. (NASDAQ: VNDA) filed a derivative complaint against the company's officers and directors for breaches of fiduciary duties, unjust enrichment, and waste of corporate assets beginning in November 2015. 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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Vanda Pharmaceuticals Used its Drugs for Off-Label Purposes
According to the complaint, since November 2015, Vanda and its officers have breached their fiduciary duties by failing to disclose to investors 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 alleges that Vanda's executives and officers knew about the prohibited promotional strategies and actively participated in the fraudulent activity. As a result, 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
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Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click Here to receive free alerts from Stock Watch when companies engage in wrongdoing.
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