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Senator Warren Says Mylan Settlement With DOJ ‘Shamefully Weak’

  • Letter to U.S. Attorney General says amount should be higher
  • Second federal lawmaker to criticize deal over Medicaid

Massachusetts Senator Elizabeth Warren is the latest critic of the $465 million settlement that drugmaker Mylan NV said it reached with the federal government over Medicaid rebates for its EpiPen allergy shot.

In a letter Friday to Attorney General Loretta Lynch, the Democratic senator wrote that her staff calculated Mylan underpaid Medicaid rebates by an estimated $530 million -- $65 million more than the settlement -- mostly because Mylan didn’t pay the required inflation rebate. Warren wrote the settlement with the Department of Justice is “shamefully weak” because it lacks criminal penalties or any incentive to “prevent drug companies from engaging in abusive schemes to defraud Medicaid and rip off taxpayers.”