According to the law firm press release, the lawsuit alleges throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) Mylan N.V. 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 N.V. and Mylan Inc. owed for EpiPen; (2) between 2011 through 2015, Mylan N.V. and Mylan Inc. paid a lower rebate of 13% when it should have been paying a higher rebate of 23.1% or more; (3) the incorrect classification appears to have cost the federal government more than $100 million in the last five years alone; (4) in turn, Mylan N.V. and Mylan Inc. lacked effective internal controls over financial reporting; and (5) as a result, Mylan N.V. 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.
On January 9, 2017, the Court appointed Lead Plaintiffs and Counsel. Lead Plaintiff filed an amended Complaint on March 20, 2017. Defendants filed a Motion to Dismiss the amended Complaint on May 30. On March 28, 2018, the Court issued an Order granting in part and denying in part the Motion to Dismiss. Defendants were given two weeks to file an answer to the surviving claims.