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.
[…] Teva Pharmaceuticals to Pay $169 Million In Drug-Pricing Case by fraudblawg on July 20, 2010 Teva Pharmaceuticals will pay Texas, California, Florida and the United States a total of $169 million to settle price reporting allegations, Texas Attorney General Greg Abbot announced Tuesday. Laws and regulations of each jurisdiction provide that, in order qualify to sell drugs to Medicare and Medicaid, pharmaceutical companies must accurately report market prices to government officials. In 2007, Texas filed suit against Teva; Mylan Laboratories, Inc.; and Sandoz Inc., alleging that the companies failed to report the low prices at which the companies sold generic drugs to high-volume customers like Wal-Mart, CVS, and Walgreens. As a result, say the states and the federal government, Medicare and Medicaid overpaid for the drugs. Suits are still pending against Mylan and Sandoz – though Mylan last year paid a substantial amount in to settle unrelated allegations concerning failure to pay rebates to state Medicaid programs. Fraudblawg previously reported on Teva Pharmaceuticals here. […]