Vanda Hid Off-Label Fraud Scheme From Investors, Suit Says

Law360 (February 25, 2019, 9:39 PM EST) -- Disgruntled Vanda Pharmaceuticals Inc. shareholders filed a proposed securities class action against the company Monday that alleges Vanda executives misled investors for years by aggressively marketing drugs for nonapproved uses to juice profits.

Lead plaintiff Kenneth Gordon, who owns an undisclosed amount of Vanda’s stock, said the  executives had failed to mention that the drugmaker's strong performance over the past few years was premised on “a fraudulent scheme in which the company promoted the off-label use of” two primary products that treat central nervous system disorders, Fanapt and Hetlioz.

“As a result, defendants’ statements about Vanda’s business, operations and prospects were...

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