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Teva Pharma Reserves $315 Million to Settle False Claims Allegations

February 10, 2010

On February 5, Teva Pharmaceutical Industries Ltd. reported to shareholders that it will record a charge of $315 million in its fourth quarter 2009 results to pay a settlement in principle to resolve allegations that reporting  false pricing resulted in inflated reimbursements by the federal government, Texas, Florida, and California. A portion of the $315 million will be held in reserve for other similar lawsuits brougt on behalf of other states.  Teva is one among many pharmaceutical manufacturers alleged to have engaged in false price reporting in numerous lawsuits pending in various states. The settlement announced by Teva Friday resolves a lawsuit brought by a small pharmacy in the Florida Keys, Ven-a-Care, which has acted as whistleblower in most of the pharmaceutical pricing lawsuits and was one of the first to report fraudulent pharmaceutical pricing schemes. Teva denies the allegations, but according to its press release “the settlement will eliminate the majority of the alleged damages asserted against Teva in the various drug pricing litigations.”  The DoJ has not yet made a statement regarding the impending settlement.

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