Attorney General Josh Stein announced that North Carolina will settle allegations against Mylan Inc. and its wholly-owned subsidiary, Mylan Specialty L.P. (collectively “Mylan”). The settlement will resolve allegations that Mylan knowingly underpaid rebates owed to the Medicaid program for the drugs EpiPen® and EpiPen Jr.® (“EpiPen”) dispensed to Medicaid beneficiaries. Under the settlement, Mylan will pay $465 million to the federal government and the states. The states will share $213,936,000 of the total settlement, $21.4 million of which will come to North Carolina for restitution and other recovery.
“Drug companies must comply with consumer and taxpayer protections,” said Attorney General Stein. “I will do everything in my power to prevent abuse of these and other programs to ensure that your hard-earned money is well spent.”
Specifically, this settlement resolves allegations that from July 29, 2010 to March 31, 2017, Mylan submitted false statements to the Centers for Medicare and Medicaid Services (“CMS”) that incorrectly classified EpiPen as a “noninnovator multiple source” drug, as opposed to a “single source” or “innovator multiple source” drug, as those terms are defined in the Rebate Statute and Rebate Agreement. Mylan also did not report a Best Price to CMS for EpiPen, as that term is defined in the Rebate Statute and Agreement, which it was required to do for all “single source” and “innovator multiple source” drugs. As a result, Mylan submitted or caused to be submitted false statements to CMS and/or the States relating to EpiPen for Medicaid rebate purposes, and underpaid its EpiPen rebates to the State Medicaid Programs.
North Carolina is part of the National Association of Medicaid Fraud Control Units (“NAMFCU”) team that led settlement negotiations. That team also includes attorneys general from California, New York, Washington, Massachusetts and Virginia.
