Pomerantz Scores Major Victory with Class Certification for Mylan Shareholders

On April 6, 2020, Pomerantz succeeded in both defeating the Defendants’ motion to dismiss the third amended complaint against Mylan Pharmaceuticals and in getting the class certified by Judge Oetken in the Southern District of New York.

The third amended complaint in In re Mylan N.V. Securities Litigation, 16-cv-07926 (JPO) alleged three categories of underlying misconduct, and the Court sustained allegations relating to all three categories.  First, the Court rejected Defendants’ argument that the Right Rebate Act, which eliminated ambiguity in the statute under which Mylan misclassified the EpiPen for economic benefits, showed that the statute was ambiguous and that Defendants could not have acted with scienter.  Second, and importantly, the Court sustained our allegations that Mylan offered anticompetitive rebates to price its competitor Sanofi-Aventis out of the market for epinephrine autoinjectors.  Third, the Court allowed our claims of price fixing and market allocation to proceed with respect to 21 generic drugs.  Finally, the Court permitted our claim for scheme liability to proceed against Jim Nesta, a National Account Manager with Mylan.  With little precedent for scheme liability, this opinion is important precedent for this type of liability.

This ruling now allows discovery in the case to proceed in full.