Teva Paying $54 Million to Settle Whistleblower Suit

Share

Teva is paying $54 million to resolve whistleblower allegations by two former company sales representatives that it used sham paid speaker programs to increase the use of its Copaxone and Azilect. Allegations in the complaint focused on a scheme to induce physicians to write prescriptions for Copaxone and Azilect by paying them as “speakers” or “consultants” when, in reality, many of the programs at issue were sham events, according to a statement from an attorney for the whistleblowers. As a result of Teva's allegedly illegal payments, it says, the physicians prescribed Copaxone, which treats relapsing-remitting multiple sclerosis, and Azilect, which treats symptoms of Parkinson's disease, and influenced other prescribers to do the same.

The complaint also alleged violation of the federal anti-kickback statute.

The case was pursued despite the government’s decision not to intervene. In a 2/27/19 order, a federal judge rejected Teva’s request for summary judgment, writing that there was a genuine issue of material fact as to whether Teva had violated the anti-kickback statute. The court also said there was a genuine issue of material fact about the efficacy of the company’s compliance program. The judge said that although Teva’s written compliance policies had all of the right language, the existence of such policies had no bearing on whether the company actually adhered to them. Settlement discussions and agreement followed the judge’s ruling.

Read more