Teva makes settlement in certain US drug pricing law suits, leading to 4th quarter charge of $315 million

Israel-headquartered Teva Pharmaceutical Industries says that several of its subsidiaries in the USA have reached a settlement in principle to resolve claims brought by Ven-A-Care of the Florida Keys on behalf of the US states Texas, Florida and California under federal and state False Claims Acts.

Together with many other pharmaceutical manufacturers, Teva is named in numerous civil law suits that relate to drug price reporting by manufacturers in about 15 states. The cases, which are pending in federal and state courts, generally allege that the prices reported by drugmakers caused governments to pay inflated reimbursements for drugs under Medicaid or other programs. Teva denies the allegations.

Upon execution of definitive settlement documents and certain government and court approvals, the settlement will resolve a law suit relating to federal contributions to all state Medicaid programs and claims of Texas, Florida and California relating to their Medicaid programs. The settlement will eliminate the majority of the alleged damages asserted against Teva in the various drug pricing litigations.