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.
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:
- Mylan paid Medicaid significantly lower EpiPen rebates than legally required;
- Medicaid had previously advised Mylan of the Company’s obligation to pay higher rebates;
- Mylan therefore knowingly and systemically overcharged Medicaid for EpiPens in violation of federal law;
- millions of dollars of Mylan’s revenue from EpiPen sales were the result of the foregoing illegal conduct by the Company; and
- as a result of the foregoing, Mylan’s public statements were materially false and misleading at all relevant times.
- Mylan to Settle EpiPen Overpricing Case for $465 Million – New York Times
- SHAREHOLDER ALERT: Pomerantz Law Firm Announces the Filing of a Class Action against Mylan N.V. and Certain Officers – MYL – GlobeNewswire
- SHAREHOLDER ALERT: Bronstein, Gewirtz & Grossman, LLC Notifies Investors of Class Action Against Mylan N.V. (MYL) & Lead Plaintiff Deadline – December 12, 2016 – PR Newswire
- Bernstein Liebhard LLP Announces That A Suit Has Been Filed Against Mylan, N.V. – PR Newswire