Multiple Class Action Lawsuits Filed on Behalf of Shareholders Against Mylan

A number of law firms filed separate class action lawsuits on behalf of shareholders last week against Mylan BV, the marketers of the EpiPen auto-injector.

The complaints are a result of Mylan agreeing to pay $465 million to settle claims by the Justice Department that the company had overcharged Medicaid and Medicare by misclassifying EpiPen as a generic drug and by doing so reduced discounts due the government from 23% to 13% for $1.3 billion spent on the device.

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The complaints all make similar claims against Mylan as described in a press release from Pomerantz LLP, alleging that:

Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects.  Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:

  1. Mylan paid Medicaid significantly lower EpiPen rebates than legally required;
  2. Medicaid had previously advised Mylan of the Company’s obligation to pay higher rebates;
  3. Mylan therefore knowingly and systemically overcharged Medicaid for EpiPens in violation of federal law;
  4. millions of dollars of Mylan’s revenue from EpiPen sales were the result of the foregoing illegal conduct by the Company; and
  5. as a result of the foregoing, Mylan’s public statements were materially false and misleading at all relevant times.

Other firms announcing actions on behalf of shareholders are Bronstein, Gewirtz & Grossman, LLC and Bernstein Liebhard, LLP.

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