Teva Pharmaceuticals Settles for $169 Million for Overpricing Pharmaceutical Products
Teva Pharmaceuticals, the Israeli generic pharmaceutical manufacturer, has settled, for $169 million, claims pending against it in Texas, California and Florida related to overpricing of its pharmaceutical products. Under the scheme, Teva had provided the drugs at issue to private pharmacies including Walgreens and Wal-Mart at steeply discounted rates, but reported higher prices to the states’ Medicaid programs. When Medicaid recipients were dispensed Teva products from the various pharmacies, the states reimbursed the pharmacies at higher rates than the pharmacies had actually paid, thus costing the taxpayers of those states significant unnecessary extra tax burden. Under the settlement, Teva does not admit liability. Texas will receive $51 million and Florida will receive $27 million. Additionally, the federal government and the State of California will divvy up the remaining $90 million contemplated by the settlement. Several other defendants remain as defendants to the lawsuits.
For more information, see the Texas Attorney General’s Press Release, available at http://www.oag.state.tx.us/oagNews/release.php?id=3413,
and the Florida Attorney General’s Press Release, available at http://www.myfloridalegal.com/newsrel.nsf/newsreleases/F45002F9757B9E478525776600519A18