Mallinckrodt Avoids $40 Million SEC Fine in Medicaid Overcharge Case

null By David SmagallaDec. 1, 2023 5:46 pm ETMallinckrodt didn’t admit or deny the SEC’s findings. Photo: Whitney Curtis/Associated PressThe U.S. Securities and Exchange Commission said Mallinckrodt failed to tell investors it had potentially overcharged Medicaid for its flagship drug, but the regulator waived a $40 million civil penalty partly because the pharmaceutical company agreed to hire a compliance consultant.The SEC said in an administrative proceeding Thursday that the Centers for Medicare and Medicaid Services informed Mallinckrodt as early as 2016 that the company was using an incorrect rebate rate for its sales of Acthar Gel, a drug used to treat several rare autoimmune diseases, which meant it was overcharging state Medicaid programs for the drug. Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8Sponsored OffersWalmart: Walmart Promo Code - $20 Off Any $50+ OrderBest Buy: Save $1000 discount on iPhone 15 Pro and Pro Max - Be