Securities and Exchange Commission v. Mylan N.V.

On September 27, 2019, the U.S. Securities and Exchange Commission (“SEC” or “Commission”) commenced an action against Mylan N.V. (“Mylan”) alleging that Mylan failed to timely disclose to investors, among other things, a possible loss relating to a U.S. Department of Justice (“DOJ”) probe into whether Mylan overcharged Medicaid by hundreds of millions of dollars for sales of EpiPen Auto-Injector (“EpiPen”) by misclassifying EpiPen as a “generic” or “non-innovator” drug.

Ultimately, Mylan agreed to settle the SEC’s charges and consented to the entry of a Final Judgment. The Final Judgment ordered Mylan to pay a civil penalty in the amount of $30 million, and authorized the Commission to distribute the civil penalty to harmed investors pursuant to Section 308(a) of the Sarbanes Oxley Act of 2002, as amended.

By Order dated February 19, 2020, the Court created a Fair Fund (the “Mylan Fair Fund”) in the amount of $30,000,000 for distribution to certain Mylan investors harmed by the alleged misconduct. In addition, the Order appointed RCB Fund Services, LLC as the Distribution Agent for the Fair Fund to oversee all aspects of the administration and distribution of the Fair Fund. In August, 2021, the Court approved a Distribution Plan that sets forth eligibility criteria and other rules governing the administration and distribution of the Mylan Fair Fund.