NEW YORK, Nov. 29, 2016 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against Mylan N.V. (“Mylan” or the “Company”) (NASDAQ: MYL ) and certain of its officers, on behalf of shareholders who purchased Mylan securities between February 21, 2012 and October 5, 2016 inclusive (the “Class Period”).
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
Mylan N.V. is an American global generic and specialty pharmaceuticals company registered in the Netherlands, principal executive offices in Hatfield and global headquarters Canonsburg, Pennsylvania. Together with its subsidiaries, develops, licenses, manufactures, markets, and distributes generic, branded generic, and specialty pharmaceuticals products in tablet, capsule, injectable, transdermal patch, gel, cream, or ointment forms. Among other products, Mylan manufactures and sells the EpiPen Auto-Injector (the “EpiPen”), a branded injection of a measured dose of epinephrine to treat severe allergic reactions.
Medicaid is a U.S. government insurance social healthcare program for persons whose income are limited. From 2011 through 2015, Medicaid spent about $797 million on purchases of EpiPens from Mylan.
The Complaint alleges that throughout the Class Period, 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) consequently, Mylan’s public statements were materially false and misleading at all relevant times.
On September 2, 2016, Inside Health Policy reported that the Centers for Medicare & Medicaid Services (“CMS”), a federal agency whose responsibilities include working in partnership with state governments to administer Medicaid, had “informed Mylan that [the Company] incorrectly classified EpiPen as a generic under the Medicaid rebate program, which caused financial consequences for federal and state governments by reducing the amount of quarterly rebates Mylan owed for its product.” Following this news, Mylan’s stock dropped $1.95 per share, or 4.65%, to close at $39.97 on September 2, 2016.
On October 5, 2016, CMS published a report stating that for years Mylan had overcharged the U.S. Medicaid health program for its EpiPen shot, despite being able to provide greater discounts under the law. The CMS letter stated that from 2011 to 2015, the U.S. Medicaid health program spent close to $797 million on EpiPens, including rebates of about 13%, instead of the 23.1% discount that the U.S. should have received. The letter also said that the government has “expressly told Mylan that the [EpiPen] product is incorrectly classified.” Following this news, Mylan stock dropped $1.19 per share, or 3.13%, to close at $36.84 on October 6, 2016.
On October 7, 2016, Mylan said that it had reached a $465 million settlement with the U.S. Department of Justice and other agencies in regards to the issues raised about the classification of EpiPen for Medicaid rebate purposes. On that same day, Mylan also announced that the Company had “received a document request from the Division of Enforcement at the [SEC] seeking communications with the CMS and documents concerning Mylan products sold and related to the Medicaid Drug Rebate Program, and any related complaints.”
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: http://www.bgandg.com/myl or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email info@bgandg.com . Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Mylan you have until December 12, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact: Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Hurwitz 212-697-6484 | info@bgandg.com
