On September 27, 2019, Mylan N.V. agreed to pay the SEC $30 million to settle charges brought against the Company for failing to timely disclose a loss contingency arising from a Department of Justice’s investigation into Mylan’s misclassification of its most profitable product, EpiPen, which resulted in hundreds of millions of dollars in overcharges to Medicaid.
According to the SEC, Mylan was informed that it was misclassifying the EpiPen as generic and that a DOJ investigation would commence in late 2014. When the DOJ informed Mylan that it would sue unless an adequate settlement could be reached, Mylan conducted at least two separate analyses of the potential damages. Nevertheless, Mylan failed to disclose: (1) that Medicaid had taken an adverse position to Mylan’s classification of EpiPen in late 2014; and (2) the potential loss contingency or even an accrual for the estimated loss despite having sufficient information to make those determinations as early as the second quarter of 2016. As a result, the SEC contended that Mylan’s public filings were false and/or misleading.
Here is a link to the SEC Press Release.
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About Michael Van Gorder
Michael Van Gorder's practice is focused on securities litigation. Michael is a Partner in the firm's Delaware office. Prior to joining F&F, Michael served as a law clerk to the Honorable James T. Vaughn, Jr. of the Delaware Supreme Court (2015-16). While attending law school, Michael served as the Editor-in-Chief of the Delaware Journal of Corporate Law and was selected as a Josiah Oliver Wolcott Fellow with the Delaware Supreme Court. Before law school, Michael worked in the private bank of a global financial services firm where he held multiple securities licenses.Michael has authored the following article: Boilermakers v. Chevron: Are Board Adopted Arbitration Bylaws Valid Under Delaware's General Corporation Law?, 39 Del. J. Corp. L. 443 (2014).Michael received his J.D., magna cum laude, from Widener University School of Law (2015). Michael received his B.S., Business Management, 2008; M.B.A., Finance, 2011, from Wilmington University. Michael is licensed to practice law in the state of Delaware and is admitted to the United States District Court of Delaware.