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Feds say Mylan overcharged for EpiPen

Pharmaceutical

Feds say Mylan overcharged for EpiPen

Mylan NV for years overcharged the US Medicaid health program for its EpiPen shot, the government said Wednesday. From 2011 to 2015, the joint state-federal program for the poor spent about $797 million on EpiPens, the Centers for Medicare and Medicaid Services said Wednesday. That included rebates of about 13 percent. But the United States should have been getting a larger discount of at least 23.1 percent. While the agency didn’t say exactly how much Mylan had overcharged, the amount could be substantial. Under law, companies are required to give Medicaid back any price increases they take on brand drugs above the rate of inflation, in addition to the 23.1 percent discount. Mylan, after acquiring the drug in 2007, has raised the price of EpiPen by about sixfold, to over $600 for a package of two. The government has in the past “expressly told Mylan that the product is incorrectly classified,’’ CMS said in the letter, which came in response to an inquiry by Congress. — BLOOMBERG NEWS

Retail

Hasbro ends dispute with TV anchor over toy

A Fox News anchor has settled a $5 million lawsuit against Hasbro for a toy hamster that had her name and which she claims was designed to look like her. Harris Faulkner sued Pawtucket, R.I.-based Hasbro in federal court in New Jersey last year. She said a plastic hamster named ‘‘Harris Faulkner’’ that was part of the company’s Littlest Pet Shop line wrongfully appropriated her name and persona, harmed her credibility as a journalist, and was an insult. Hasbro had said the hamster was not named for the anchor. Both sides asked for the lawsuit to be dismissed on Wednesday. Fox News says in a statement that the toy is no longer sold and the lawsuit was ‘‘settled amicably,’’ although it did not release details. Faulkner hosts the show ‘‘Outnumbered.’’ — ASSOCIATED PRESS

Technology

Samsung phone eyed in plane incident

Southwest Airlines Co. said a Samsung Electronics Co. smartphone caused smoke that forced the evacuation of a plane waiting to depart from Louisville, Ky., almost three weeks after US safety regulators started an official recall of the Galaxy Note 7. The phone involved was a replacement for a recalled Galaxy Note 7, owner Brian Green told The Verge, a technology website. Green said he picked up the phone at an AT&T Inc. store on Sept. 21, and showed The Verge a photograph of the box that displayed a black square symbol indicating a replacement phone. Samsung recalled Galaxy Note 7 smartphones last month because a battery flaw can lead to overheating, posing a burn hazard to consumers. The Federal Aviation Administration will investigate. The incident involved “just smoke — no explosion or flames of any kind,’’ said Southwest spokeswoman Lori Crabtree. — BLOOMBERG NEWS

Technology

Jeff Bezos’s space rocket venture passes test

Billionaire Jeff Bezos’s space-exploration company took another step toward sending tourists into suborbital space with a safety test of an escape capsule designed to detach from the rocket booster and slowly descend to Earth with parachutes. Blue Origin LLC on Wednesday conducted its most rigorous test yet of an escape system that would propel passengers away from the rocket in the event of problems. The escape system differs from those in earlier rockets in that it doesn’t have to be deployed on every flight, helping to lower the cost of launches, Blue Origin said. The New Shepard rocket was launched from a testing site in West Texas. The escape capsule detached from the rocket with a blast about 45 seconds after launch, blue parachutes deployed, and it slowly descended to Earth. Blue Origin aims to send crews into space next year and expects to sell seats to tourists in 2018 for $250,000 to $350,000. — BLOOMBERG NEWS

Health Care

UnitedHealth sued over pharmacy charges

Some UnitedHealth Group customers claim the health insurer defrauded them by setting up a system that secretly overcharged for prescription drugs. UnitedHealth customers made copayments far in excess of the costs of actual drugs, sometimes paying $50 for a drug that cost the insurer less than $15, according to a lawsuit filed Tuesday in Minnesota. UnitedHealth hadn’t yet been served with the complaint, spokesman Tyler Mason said Wednesday. “Pharmacy benefits are administered in line with the coverage described in the plan documents,’’ Mason said. It’s not the first time UnitedHealth has been accused of overcharging customers for prescription drugs. The Minnetonka, Minn.-based insurer was sued in 2000 for allegedly forcing consumers to hand over copayments higher than specified by their plan contracts. It agreed to pay about $10 million to resolve the claims but the insurer didn’t admit wrongdoing. — BLOOMBERG NEWS

Workplace

New charges in fast-food workers’ campaign against McDonald’s

Labor organizers say they’ve named McDonald’s and its franchisees in allegations of sexual harassment, as part of their push to win higher pay and a union for fast-food workers. The claims were filed with the US Equal Employment Opportunities Commission on behalf of 15 workers involved in the Fight for $15 campaign, organizers said Wednesday. They allege behavior such as a manager rubbing up against and grabbing female employees. The claims name McDonald’s Corp. as well its franchisees, reflecting a push by labor organizers to hold the company responsible for working conditions at franchised restaurants. McDonald’s said it is reviewing the allegations and that the company and its franchisees are committed to respectful treatment of everyone. The company has maintained it is not responsible for hiring and pay practices at franchised locations. The Fight for $15 campaign has taken a number of routes to get McDonald’s legally recognized as a joint employer. Moreover, the National Labor Relations Board is arguing McDonald’s should be considered a joint employer in an ongoing trial over claims McDonald’s workers were subject to retaliation for taking part in Fight for $15 activities. — ASSOCIATED PRESS

Technology

French cyberattack continues

A French official says the hackers who knocked a French television station offline last year are still regularly trying break into French government computers. Senior French cybersecurity official Guillaume Poupard says sensors deployed at government ministries routinely pick up electronic signatures linked to the group. The revelation adds another dose of intrigue to the attack, which briefly interrupted 11 channels belonging to TV5 Monde and packed its social media sites with propaganda for the Islamic State group. But L’Express magazine reported that investigators believed a Russian group carried out the attack. Poupard told reporters Wednesday that the hackers’ identity still hadn’t been definitively established. — ASSOCIATED PRESS

Retail

Nation’s largest mall to close on Thanksgiving

Mall of America, the nation’s largest shopping mall, has taken a stand against the growing trend of Thanksgiving shopping and will be closed on the turkey feast this year. The center, in Bloomington, Minn., has been open on Thanksgiving since 2012. But mall officials say it wants to offer workers time with their families. The mall will reopen at 5 a.m. on the Friday after Thanksgiving. The Friday after Thanksgiving had long served as the kickoff to the holiday shopping season. But over the past several years, Thanksgiving has become the new tradition as stores try to outdo others. But the move has also been controversial as workers voiced complaints and signed petitions that stores are putting profits over their time with family. Given its size and status, the Mall of America could inspire other malls and stores to follow suit. Many major retailers and malls have yet to disclose their plans for the Thanksgiving weekend. —ASSOCIATED PRESS