Legal News

EpiPen Maker Must Pay $465 Million to Settle Lawsuit
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Summary: Mylan has agreed to pay $465 million after misclassifying the Epipen as generic and therefore avoiding Medicaid payments.

Last year, the maker of the EpiPen was in hot water for overcharging consumers for the emergency allergy drug; and officials announced on Thursday that the drug manufacturer must pay $465 million to settle a joint state-federal lawsuit.

In 2016, there was a public outcry when EpiPen raised its prices by 400%. EpiPens are emergency allergy treatments, and the government alleged that Mylan had falsely classified the treatments as generic rather than branded from 2010 to 2017 in order to reduce the rebates the company paid to Medicaid. According to Newsday, EpiPens are the most prescribed drug on the market.

  
What
Where


“For nearly seven years, Mylan prioritized its bottom line — and shortchanged the Medicaid program and taxpayers,” New York Attorney General Eric Schneiderman said in a statement. “By misclassifying EpiPen, Mylan attempted to sidestep [its] obligations, leaving taxpayers to foot the bill.”

The price hike angered consumers, but action was taken by the government after rival drug maker Sanofi filed a whistleblower lawsuit, according to ABC News. 

Medicaid is a health-care program for the poor, and Scheneiderman said that a portion of the settlement will be allocated to the Medicaid programs in all 50 states.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Mylan admitted no wrongdoing as part of the settlement, and it will reclassify the drug and pay Medicaid rates as of April 2016.

“Bringing closure to this matter is the right course of action for Mylan and our stakeholders to allow us to move forward,” Mylan Chief Executive Heather Bresch said in a statement.



This settlement is the second one that Mylan has made with the government regarding overcharging for its medicines. ABC News reported that a watchdog group criticised the recent settlement for being smaller than what Medicaid was overcharged.

“DOJ is letting Mylan get off on the cheap for ripping off the government, and with no admission of wrongdoing,” Robert Weissman, president of Public Citizen, said in a statement.

Weissman and Senate Judiciary Committee Chairman Chuck Grassley, R-Iowa, said the Health and Human Services Department’s Office of Inspector General concluded that Medicaid incorrectly paid Mylan $1.27 billion more than they should have for over a decade. Grassley told ABC News that he had no idea how the amount of $465 million was decided.

In 2007, Mylan raised the EpiPen price from $94 to $608, and experts said that it costs the company about $10 to make one pen. On Thursday, the Department of Justice revealed that Sanofi filed a lawsuit against Mylan using the False Claims Act, which allows companies and individuals to sue over improper charges to government programs and receive a cut of any money recovered. ABC News said that Sanofi is expected to receive $38.7 million from this settlement.

What do you think of the EpiPen maker Mylan? Let us know in the comments below.



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Litigation Attorney with 3-5 years of products liability experience

USA-CA-San Francisco

San Francisco office of our client seeks litigation attorney with 3-5 years of experience. The ideal...

Apply Now

Senior Litigation Attorney with some experience

USA-CA-Orange

Irvine office of our client seeks senior litigation attorney. The candidate should preferably have c...

Apply Now

Trademark Attorney with 5+ years of prosecution experience

USA-CA-San Diego

San Diego office of our client seeks trademark attorney with 5+ years of prosecution experience. The...

Apply Now

Global Sourcing and Technology Attorney with 2-4 years of experience

USA-TX-Dallas

Dallas office of our client seeks global sourcing and technology attorney with 2-4 years of experien...

Apply Now

RELEVANT JOBS

Paralegal / Legal Assistant

USA-MD-Rockville

Busy AV rated Rockville criminal and family law firm looking for experienced administrative assistan...

Apply now

Environmental Associate

USA-NJ-West Orange

Chiesa Shahinian & Giantomasi PC has an immediate opening for an environmental associate to join our...

Apply now

033477 - Senior Counsel

USA-FL-Rockledge

To be fully engaged in providing Quality/No Harm, Customer Experience, and Stewardship by providing ...

Apply now

Paralegal - Insurance Defense

USA-GA-Atlanta

Downtown Insurance Defense Law Firm seeks an experienced paralegal with at least 3-5 year\'s experie...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top