Teva to pay Illinois $135m fraud settlement

Teva Photo: Reuters Ammar Awad

Illinois Attorney General Lisa Madigan says the Israeli pharmaceutical giant has agreed compensation for allegedly inflating wholesale prescription drug prices.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) will pay $135 million to the State of Illinois to settle a lawsuit for fraud filed in 2005, Illinois Attorney General Lisa Madigan has announced.

Illinois charged that the Israeli pharmaceutical giant and 46 other pharmaceutical companies had defrauded its Medicaid program by inflating wholesale prices of its prescription drugs.  The lawsuit, filed in Cook County Circuit Court, alleged that various drugmakers had misreported what pharmacies paid for their drugs.

Teva said in response,"In order to focus on providing important and affordable treatments to patients, Teva and Watson decided to reach a settlement in these suits to prevent continuing litigation. The company continues to strenuously deny these allegations by the State and this suit and presented siginifcant evdience in court to show that Illinois was completely aware of the pharmaceutical industry's approach regarding reporting average wholesale prices and consequently did not suffer any damage." 

Published by Globes, Israel business news - en.globes.co.il - on January 13, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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Teva Photo: Reuters Ammar Awad
Teva Photo: Reuters Ammar Awad
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