Teva Pays $450 Million to Settle Kickback Cases

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Teva Pharmaceuticals has agreed to pay $450 million to resolve two civil cases that allege the company violated the Anti-Kickback Statute (AKS) and the False Claims Act (FCA). In one kickback settlement, Teva has agreed to resolve separate allegations that it conspired with other generic drug manufacturers to fix prices for pravastatin, clotrimazole and tobramycin, according to a Justice Department release. “Teva USA previously entered into a deferred prosecution agreement with the Justice Department’s Antitrust Division to resolve related criminal charges,” it says. “Teva USA paid a criminal penalty of $225 million and admitted to conspiring with three other generic drug companies to fix prices on certain generic drugs. Under the civil settlement announced today, Teva agreed to resolve allegations that the benefits it received under its price-fixing scheme constituted illegal kickbacks.”

The other resolution involves allegations that Teva “violated and conspired to violate the AKS and FCA by paying Medicare patients’ cost sharing obligations (copays) for multiple sclerosis drug Copaxone from 2006 through 2017, while steadily raising Copaxone’s price,” according to the government.

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