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WASHINGTON, May 20, 2020 /PRNewswire/ -- Vanda Pharmaceuticals Inc. (Vanda) (Nasdaq: VNDA) today announced that the Federal District Court in Washington D.C. granted Vanda's motion to dismiss a False Claims Act lawsuit filed against the company.
On May 19, 2020, Judge Amit P. Mehta granted Vanda's motion to dismiss the lawsuit, concluding that the relator's allegations fail to state a viable claim under the False Claims Act. At the relator's request, the Court will allow an amended complaint in which the relator may attempt to remedy pleading deficiencies. If the relator does replead, Vanda anticipates filing a renewed motion to dismiss.
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About the False Claims Act lawsuit
In early 2017, a former Vanda employee filed a lawsuit alleging violations of the False Claims Act. That action is captioned United States ex rel. Gardner v. Vanda Pharmaceuticals Inc., No. 17-464 (D.D.C.). After a nearly two year investigation, the U.S. Department of Justice announced in January 2019 that it declined to intervene in the lawsuit, following which Vanda moved to dismiss the lawsuit.
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