PHILADELPHIA, PA — In a significant legal resolution, Teva Pharmaceuticals USA, Inc. has agreed to a $25 million settlement to address allegations of violating the False Claims Act. This agreement forms part of a broader settlement involving a total of $450 million, reflecting the company’s financial capacity to settle claims linked to price-fixing and kickback arrangements.
The allegations against Teva center on activities from May 1, 2013, to December 31, 2015. During this period, the company allegedly orchestrated arrangements with other pharmaceutical manufacturers to manipulate the pricing, supply, and customer allocation for two of its generic drugs: pravastatin, used to manage cholesterol levels, and tobramycin, an antibiotic. Such practices are purportedly in contravention of the Anti-Kickback Statute, which prohibits compensations that could influence federal health care programs’ drug purchases.
U.S. Attorney Jacqueline C. Romero emphasized the detrimental impact of such kickback schemes, noting the escalation of drug costs and the distortion of market competition. These illegal practices undermine the financial controls intended to protect taxpayer-funded health programs, which serve a broad demographic, including senior citizens and military members.
The Justice Department, represented by Principal Deputy Assistant Attorney General Brian M. Boynton, reiterated its commitment to eliminating illegal kickbacks in the healthcare industry. He highlighted how such violations adversely affect decision-making within healthcare sectors and compromise the integrity of federal programs.
Special Agent in Charge Maureen R. Dixon of the HHS-OIG expressed that price collusion obstructs the accessibility of affordable medications for Americans. The agency remains steadfast in its efforts to investigate and mitigate healthcare fraud that threatens public and Medicare interests.
Additionally, the Defense Criminal Investigative Service (DCIS) underscored the financial strain illicit price hikes place on TRICARE, a healthcare program for military personnel. Special Agent in Charge Patrick J. Hegarty pointed out the importance of the collaborative effort among investigative bodies to curb such fraudulent activities.
The settlement with Teva is the latest in a series of resolutions from an extensive investigation into generic drug manufacturers’ price-fixing practices. This pursuit of accountability underscores the critical role of the False Claims Act in safeguarding the financial integrity of the U.S. government.
While Teva has settled this civil case, it is crucial to note that these claims are allegations, with no liability determination made.
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