Mylan agreed to pay $30 million to settle a lawsuit claiming it failed to disclose to investors a 2017 U.S. Justice Department probe into whether it overcharged Medicaid for its EpiPen allergy treatment.
The settlement with the Securities and Exchange Commission comes two years after the drugmaker agreed to pay the federal government $465 million for allegedly misclassifying the EpiPen as a generic drug for almost a decade. The alleged acts led to overcharging Medicaid by $1.27 billion, according to the lawsuit.
At that same time, the Justice Department began a probe into whether the company intentionally misclassified the drug to gain a larger profit.
The SEC's lawsuit claims Mylan kept investors in the dark about the potential losses it could accrue from the Justice Department probe into the alleged act of misclassifying the drug.
Public companies facing material losses from a lawsuit or government probe must report the potential loss and record an accrual for the estimated loss if it is probable and can be reasonably estimated, according to STAT.
Mylan released a statement saying, "Mylan believes at this time, taking all other matters into consideration, that this settlement is the right course of action for the company."
The drugmaker still faces additional federal and civil suits regarding EpiPen.
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