Have you held shares of Vanda Pharmaceuticals (NASDAQ: VNDA) since on or before November 4, 2015?

On May 19, 2022, Vanda Pharmaceuticals agreed to settle a securities fraud class action complaint (the “Complaint”) for $11.5 Million.  That settlement covers share purchases made between November 4, 2015 through February 11, 2019, inclusive (the “Class Period”).

Vanda is a biopharmaceutical company that focuses on the development and commercialization of a variety of drug products. The class action complaint alleged that, during the Class Period, Defendants made false and misleading statements and/or failed to disclose that Vanda was engaged in alleged off-label promotion of its two commercially available drugs, Fanapt and Hetlioz. The Complaint also alleges that Defendants made false and misleading statements and/or failed to disclose information regarding the status of clinical trials for tradipitant, a drug in Vanda’s clinical development pipeline. The Complaint alleges that as a result of this and other information being withheld from the market, the price of the Company’s shares was artificially inflated during the Class Period. On February 5 and 6, 2019, Vanda’s stock fell 19.95% to close at $20.06 per share on February 6, 2019, after the alleged disclosure by Vanda that it had sued the FDA for issuing a partial clinical hold on its human study for tradipitant. On February 11, 2019, the stock fell 5% to close at $18 per share, following the alleged disclosure by a short-seller report that a qui tam whistleblower lawsuit had been filed and alleged that Vanda was engaged in an off-label marketing scheme for Fanapt and Hetlioz.

If you have held Vanda Pharmaceuticals shares since on or before November 4, 2015, you can seek corporate reforms, the return of funds back to company coffers, and potentially a court approved incentive award if appropriate.

If you would like to learn more about this matter at no cost to you, fill out this form or contact us at jgrabar@grabarlaw.com or call 267-507-6085.