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EpiPen maker finalizes settlement for government overcharges

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FILE - In this July 8, 2016, file photo, a pharmacist holds a package of EpiPens epinephrine auto-injector, a Mylan product, in Sacramento, Calif. (AP Photo/Rich Pedroncelli, File)

EpiPen maker Mylan has finalized a $465 million federal agreement settling allegations it overbilled Medicaid for its emergency allergy injectors for a decade - charges brought after rival Sanofi filed a whistleblower lawsuit and tipped off the government.

It's the second settlement with the Department of Justice that Mylan has made since 2009 for allegedly overcharging the government.

The new case involves Mylan paying Medicaid too-low rebates for the devices by classifying its brand-name product as a generic, which requires lower rebates.

The settlement resolves claims against Mylan from the Justice Department and Sanofi, which made a rival auto-injector called Auvi-Q. Sanofi recalled nearly 500,000 of its devices from the market in 2015, due to some not administering the correct medicine dose to reverse a severe allergic attack.

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