Teva Neuroscience and Teva Pharmaceuticals USA have reached a $450 million settlement to address claims of violations of the False Claims Act (FCA) and the Anti-Kickback Statute (AKS). Teva is the biggest generic medication maker in the U.S., with its headquarters located in Parsippany, New Jersey. Two main problems are included in the settlement: first, claims that Teva inappropriately paid Medicare patients' cost-sharing responsibilities for Copaxone, a medication for multiple sclerosis, while raising its price between 2006 and 2017. The government claimed that Teva conspired with third parties to ensure donations were used to cover these copays, thereby causing false claims to be submitted to Medicare.
The second issue involves allegations of price-fixing related to pravastatin and other generic drugs, which Teva resolved through a prior deferred prosecution agreement with the Justice Department. This settlement marks a significant enforcement action against pharmaceutical companies manipulating drug pricing, as it is part of broader efforts to combat healthcare fraud. Since 2017, the U.S. government has recovered over $1 billion from pharmaceutical companies utilizing third-party foundations for unlawful copay payments, making this resolution with Teva one of the largest of its kind.
