Senators Frown on Mylan EpiPen Settlement with DOJ, Shares Drop

Mylan NV (NASDAQ:MYL) has agreed to pay $465 million to settle claims that the drug giant underpaid the federal government in rebates to Medicaid for its EpiPen allergy shot. However, the move is not enough. Senator Elizabeth Warren criticized the company’s arrangement with the Department of Justice, in a letter to Attorney General Loretta Lynch on Friday.The Democratic senator called the settlement “shamefully weak” and “shockingly soft,” because it excluded criminal penalties or any incentive to “prevent drug companies from engaging in abusive schemes to defraud Medicaid and rip off taxpayers.” She wrote that according to calculations made by her staff, Mylan shortchanged Medicaid rebates by estimated $530 million, which means DOJ essentially “rewarded” Mylan by letting it keep $65 million it made by “defrauding Medicare and Medicaid.”

Source: Senators Frown on Mylan NV (MYL) EpiPen Settlement with DOJ, Shares Drop SMART STOCK NEWS

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