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 to 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.
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