Lawsuit Overview
April 6, 2020 - The court granted in part and denied in part defendants' motion to dismiss.
July 31, 2019 - A motion to dismiss the third amended complaint was filed.
June 17, 2019 - A third amended complaint was filed.
March 29, 2019 - The court granted in part and denied in part defendants' motion to dismiss.
August 6, 2018 - A motion to dismiss the second amended complaint was filed.
July 6, 2018 - A second amended complaint was filed.
March 28, 2018 - The court granted in part and denied in part defendants' motion to dismiss.
May 30, 2017 - A motion to dismiss the amended complaint was filed.
March 20, 2017 - An amended complaint was filed.
October 11, 2016 - An investor in shares of Mylan NV (NASDAQ: MYL) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Mylan NV in connection with certain allegedly false and misleading statements made between February 28, 2013 and October 7, 2016.
According to the complaint the plaintiff alleges on behalf of purchasers of Mylan NV (NASDAQ: MYL) common shares between February 28, 2013 and October 7, 2016, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that between February 28, 2013 and October 7, 2016 the defendants made false and/or misleading statements and/or failed to disclose that Mylan NV and Mylan Inc incorrectly classified EpiPen as a generic under the Medicaid Drug Rebate Program, which was financially consequential for federal and state governments as it reduced the amount of quarterly rebates Mylan NV and Mylan Inc owed for EpiPen, that between 2011 through 2015, Mylan NV and Mylan Inc paid a lower rebate of 13% when it should have been paying a higher rebate of 23.1% or more, that the incorrect classification appears to have cost the federal government more than $100 million in the last five years alone, that in turn, Mylan NV and Mylan Inc lacked effective internal controls over financial reporting, and that as a result, Mylan NV and Mylan Inc’s public statements were materially false and misleading at all relevant times. The lawsuit claims that investors suffered damages when these details entered the market. Mylan NV reported that its annual Total Revenue rose from over $7.71 billion in 2014 to over $9.42 billion in 2015 and that its Net Income declined from $929.40 million in 2014 to $847.60 million in 2015. Shares of Mylan NV (NASDAQ: MYL) grew from $26.92 per share in late 2012 to as high as $$76.06 per share in April 2015.
On October 5, 2016, the Centers for Medicare and Medicaid Services ( CMS ) issued a letter stating that Mylan NV had for years overcharged the U.S. Medicaid health program to buy its EpiPen shot, despite being told that the Company needed to provide bigger discounts under the law. The CMS letter stated that from 2011 to 2015, the U.S. Medicaid health program spent approximately $797 million on EpiPens, including rebates of roughly 13%, rather than the discount of 23.1% that the U.S. should have received. The letter stated that the government has previously expressly told Mylan that the [EpiPen] product is incorrectly classified.
Shares of Mylan NV (NASDAQ: MYL) declined to as low as $35.94 per share on October 7, 2016.