Heather Bresch, chief executive officer of Mylan NV, listens during a House Oversight and Government Reform Committee hearing in Washington, Sept. 21, 2016. Andrew Harrer | Bloomberg | Getty Images

There's no home court advantage for Mylan when it comes to the EpiPen controversy. West Virginia's attorney general Wednesday called on the Justice Department to reject an announced $465 million settlement from Mylan to resolve allegations that the big pharma company shortchanged the Medicaid system in rebates for sales of the anti-allergy device EpiPen.

AG Patrick Morrisey called that yet-to-be-signed settlement announced last month a "sweetheart deal" that is "irresponsible," "woefully deficient," and "not in the best interests of West Virginia" if the amount Mylan has said it will pay is correct.

"It does not nearly pay for the damage done by Mylan and sends the wrong message of leniency to other pharmaceutical companies engaged in the Medicaid market," Morrisey wrote U.S. Attorney General Loretta Lynch. "Simply put, if the settlement is accepted, Mylan — which, under the terms of the agreement will admit no wrongdoing — wins, while the taxpayers who fund Medicaid and the States that participate in the program, including West Virginia, lose," he wrote. "Mylan must not be allowed to receive a windfall after flagrantly defrauding the Medicaid Drug Rebate Program." Morrisey cited a CNBC article in his letter to note that "the $465 million represents a tremendous deal for Mylan, which may actually owe Medicaid nearly $700 million, and which has benefits from soaring stock prices after word of the announcement began to spread." West Virginian would share in the proceeds of the settlement. Morrisey said his state and other states "would lose millions" under the amount Mylan has said it agreed to pay the Justice Department.

