Vanda Pharmaceuticals Inc. (VNDA) Used its Drugs for Off-Label Purposes
According to the complaint, since November 2015, Vanda Pharmaceuticals Inc (VNDA) 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) Have Legal Options
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