Vanda Pharma Can’t Nix Investors’ Off-Label Fraud Suit – Law360

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Law360 (March 10, 2021, 7:52 PM EST) — A New York federal judge declined Wednesday to allow Vanda Pharmaceuticals Inc. or its CEO to slip a proposed securities class action alleging the company misled investors by aggressively marketing drugs for nonapproved uses, but he did allow three other Vanda executives out of the case.

Investors claimed in their February 2019 suit that Vanda failed to mention that its strong performance over the preceding 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.

U.S. District Judge Frederic Block found…

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