CONSUMER CATCH-UP: EpiPen maker to pay $30 million for financial nondisclosure, DOJ issues guidelines for using consumer genetic databases, and tax cheats cost the U.S. $381 billion each year

ByMichael Finney and Simone Chavoor via KGO logo
Saturday, September 28, 2019
EMBED <>More Videos

CONSUMER CATCH-UP: EpiPen maker Mylan to pay $30 million for financial nondisclosure to their investors after a DOJ investigation, DOJ issues guidelines for using consumer genetic databases to solve crimes, and tax cheats cost the U.S. $381 billion each year.

SAN FRANCISCO (KGO) -- EpiPen maker to pay $30 million to settle financial nondisclosure to investors after DOJ investigation

The makers of EpiPen have agreed to pay $30 million to settle charges that they did not disclose financial obligations stemming from an investigation that found they overcharged for the allergy treatment.

Mylan was accused by the Security and Exchange Commission of overcharging Medicaid for the EpiPens, leading to an investigation by the Department of Justice that found Mylan had misclassified their treatment as a generic drug. This misclassification meant that Mylan would have to pay lower rebates to the government than if the drug were labeled a brand-name drug - a move that saved the drug maker millions of dollars.

Now, Mylan is accused of failing to tell its investors about their $426 million liability. "Investors were kept in the dark about Mylan's EpiPen misclassification and the potential loss Mylan faced as a result of the pending investigation into the misclassification," said Antonia Chion, Associate Director in the SEC's Division of Enforcement.

Mylan will pay $30 million to settle without either admitting or denying the charges.

DOJ issues guidelines for the use of DNA info gathered by consumer services

In the wake of high-profile crimes (such as the "Golden State Killer") solved through the use of DNA gathered by consumer services, the U.S. Department of Justice has issued a set of guidelines for how law enforcement can use information from these services.

These preliminary guidelines say that suspects "shall not be arrested based solely on a genetic association" found through a "genetic genealogical service." Suspects' DNA must also match up to the FBI's own database. The guidelines also say that genetic information can only be used for "unsolved violent crime or sexual offenses." Exceptions can be made if there is a "substantial and ongoing threat to public safety or national security," in which case prosecutors would have the ability to expand their search. Finally, law enforcement agencies would only be allowed to use the databases of consumer services that explicitly tell their customers that their information could be used to solve crimes.

The DOJ says they will continue to reassess their tools and techniques to "ensure that its policies and practices properly reflect its law enforcement mission and its commitment to respect individual privacy and civil liberties."

IRS stiffed $381 billion by tax cheats, study finds

A new study by the IRS has found that tax cheats cost the United States $381 billion every year.

The IRS studied data from 2011 to 2013, looking at individual income tax, corporate income tax, employment taxes, and payroll taxes. The difference between the amount owed to the IRS versus the amount actually paid came to $381 billion, or 15 percent of total amount owed to the IRS.

The "tax gap" is attributed to people underreporting, underpaying, or not filing at all. Over a ten-year period, the IRS estimates that it is stiffed $8 trillion. While total tax compliance is an unrealistic goal, the IRS's tax enforcement efforts collected $60 billion after the filing deadlines between 2011 to 2013.

Take a look at more stories and videos by Michael Finney and 7 On Your Side.


CONSUMER CATCH-UP: How much Americans spend on Halloween candy, a simple way to cut your water bill by 13 percent, and Congress urged to reevaluate airline 'family seating' policies

    CONSUMER CATCH-UP: FTC sues Match for deceptive 'love interest' ads, Home Meridian recalls dresser for tip-over risk, and dogs can lower your home's resale value

      CONSUMER CATCH-UP: Nissan recalls 1.2 million cars for backup camera glitch, Nestle debuts plant-based 'Awesome Burger,' and price of tomatoes may rise after new agreement

        CONSUMER CATCH-UP: Chevy recalls Trax SUVs due to suspension flaw, reports of scam 'smishing' texts increase, and Iceland is rated the best place to retire

          CONSUMER CATCH-UP: San Francisco sues travel websites for deceptive practices, major broadcasters drop e-cigarette ads, and authorities warn of new Venmo scams

            CONSUMER CATCH-UP: Amazon allows shoppers to pay cash for online purchases, WalletHub ranks the best California cities to retire, and consumers cite high TV costs as the reason for cord-cutting

              CONSUMER CATCH-UP: AT&T sued for allegedly creating fake DirecTV Now accounts, people would rather drive than use self-driving cars, survey says

                CONSUMER CATCH-UP: GPS trackers found to leak location data, Galaxy Fold pre-orders canceled, and the 3 things to shop for in September

                  CONSUMER CATCH-UP: AT&T declared 'best network' by testing firm, Target releases list of hot toys, and Amazon reportedly testing hand-scan checkout systems

                    CONSUMER CATCH-UP: Prep for phones before Hurricane Dorian, stem cell therapy company warned by FDA, and 24,000 pounds of beef recalled

                      CONSUMER CATCH-UP: Ford recalls 10 vehicle models for multiple issues, dental offices crippled by ransomware attack, and RH recalls chairs due to lead paint

                        CONSUMER CATCH-UP: Travel companies announce Hurricane Dorian plans, new scam purports to be from U.S. Marshals, and pill bottles recalled due to child safety risk

                          CONSUMER CATCH-UP: United Airlines' frequent flyer miles no longer expire, Toyota recalls cars for airbag issues yet again, and Tesla to offer its customers car insurance policies

                            CONSUMER CATCH-UP: Carriers, state Attorneys General form anti-robocall coalition, DoorDash changes tipping policy, Amazon carries banned products, and consumers make better decisions when angry

                              CONSUMER CATCH-UP: Smart speakers may connect consumers to scammers, Google announces 'privacy sandbox' initiative, and Apple's new credit card requires serious care and cleaning

                                CONSUMER CATCH-UP: Toyota recalls RAV4s over backup camera issue, YouTube shuts down in-app messaging, and an unprotected server exposed MoviePass user data

                                  CONSUMER CATCH-UP: Facebook adding controls for data accessed by third parties, wireless carriers found to throttle video streams, and Spotify to allow parents to filter explicit content

                                    CONSUMER CATCH-UP: Tesla to rent solar panels, 2019 on track to set record for most data breaches, and the Tooth Fairy's leaving kids less cash

                                      CONSUMER CATCH-UP: Mercury ordered to pay largest-ever insurance fine, Tyson recalls chicken patties, and Palm offers $5 phone plan

                                        CONSUMER CATCH-UP: Credit Karma exposes user data, and WalletHub lists cheapest, most expensive cars to insure

                                          CONSUMER CATCH-UP: FAA bans recalled MacBooks from U.S. flights, FCC Chairman recommends approving Sprint, T-Mobile merger, and clothing retailer Avenue to close

                                            CONSUMER CATCH-UP: Motorized awnings recalled after injuries, death, lawmakers ask for transparency in 'Amazon's Choice' program, and Domino's to deliver via e-bike

                                              CONSUMER CATCH-UP: CFPB delays rule to make car title loans less risky, Chase forgives Canadians' debt, and robocall-blocking apps may violate user privacy

                                                CONSUMER CATCH-UP: Ford recalls SUVs with rollaway risk, IRS may revoke passports of those with major tax debt, and Consumer Reports urges FTC action over hotel 'resort fees'

                                                  CONSUMER CATCH-UP: FCC and FEMA to test emergency alert system, finances seen as one of the most taboo topics, and Google outlines efforts to go carbon-neutral

                                                    CONSUMER CATCH-UP: CFPB rule change might make it harder to get mortgages, Poshmark hacked, and AirPods get a new sharing feature

                                                      CONSUMER CATCH-UP: Audi recalls cars with faulty airbags, researchers list the most- and least-stolen new cars, and more scooter companies will be permitted in SF

                                                        CONSUMER CATCH-UP: Retailers sued over 'Edison' lightbulbs, FTC warns of fake Equifax claim websites, and Impossible Burgers to hit grocery store shelves

                                                          CONSUMER CATCH-UP: Next steps for consumers after Capital One hack, FTC's new interactive robocall website, and almost a third of delivery drivers eat customers' food

                                                            CONSUMER CATCH-UP: IRS warns Bitcoin users to pay their taxes, Regal Cinemas offers 'unlimited' movie program, and Acura recalls cars over driveshaft issue

                                                              CONSUMER CATCH-UP: Samsung's foldable smartphone to launch in September, FitBits may not work on darker skin tones, and Mazda recalls cars over headrests

                                                                CONSUMER CATCH-UP: DoorDash changes controversial tipping policy, Nintendo offers repair for 'Joy-Con drift' on Switch, and Trek recalls Kickster bikes

                                                                  CONSUMER CATCH-UP: Boppy recalls infant accessories, FTC urged to investigate Amazon over paid endorsements, and GNC to close 900 stores

                                                                    CONSUMER CATCH-UP: P&G launching 'smart diapers,' online searches for canceling Prime membership peaked on Prime Day, and Twitter tweaks its design again

                                                                      CONSUMER CATCH-UP: CVS recalls eyedrops, Apple warns of spoofed calls, and Tesla could become part of Walt Disney World

                                                                        CONSUMER CATCH-UP: Toyota tests new car roof solar cells, Apple redesigns MacBook keyboards, and teen employment rates stagnant