(Reuters) – Mylan NV <MYL.O> will pay a $30 million civil fine to settle U.S. Securities and Exchange Commission charges it concealed a possible loss related to a federal probe on whether it overcharged Medicaid by hundreds of millions of dollars for sales of its EpiPen Auto-Injector.
The SEC accused Mylan of misleading investors by failing to disclose or set aside money for the two-year probe by the U.S. Department of Justice before it announced a $465 million settlement in 2016.
According to the SEC, Mylan’s misclassification of EpiPen, which is used to treat severe allergic reactions, as a “generic” drug allowed the company to pay much lower rebates to the government than if it were classified as a “branded” drug.
Mylan did not admit or deny wrongdoing in agreeing to settle. In a statement, the company called the settlement “the right course of action.”
(Reporting by Jonathan Stempel in New York; Editing by Susan Fenton and Dan Grebler)