Teva Pharmaceutical Industries Ltd.
announced it is settling several lawsuits related to Medicaid
reimbursement for its products, and setting aside $315 million to cover
the settlement and other suits.
Teva did not say how much it will pay to resolve the lawsuits and
how much will be placed in reserve. The Israeli company, the world’s
largest manufacturer of generic drugs, said the settlement would
endlawsuits brought by the U.S. government and the states of Florida,
Texas, and California. The lawsuits alleged that Teva inflated the
prices of products to receive higher reimbursements from Medicaid
programs.
The settlement would end the claims against Teva by the federal
government and three states. Fifteen states had filed suit against Teva
concerning Medicaid reimbursement.
In
its announcement Teva indicated that other pharmaceutical manufacturers
are defendants in the civil suits over drug pricing.