Teva to Settle Drug Price Fixing Claims

7 February 2010 (Last Updated February 7th, 2010 18:30)

Israel-based drugmaker Teva Pharmaceuticals has said it plans to settle lawsuits alleging that the company used its influence to raise drug prices under Medicaid and other programmes in the US. The company, which denies the charges brought by Ven-A-Care, said it will record a charge of

Israel-based drugmaker Teva Pharmaceuticals has said it plans to settle lawsuits alleging that the company used its influence to raise drug prices under Medicaid and other programmes in the US.

The company, which denies the charges brought by Ven-A-Care, said it will record a charge of about $315m in its fourth quarter. This charge includes the settlement in principle and a reserve for the remaining drug pricing lawsuits to which Teva is a party.

Teva is one of a number of drug companies involved in numerous civil lawsuits relating to drug price reporting by manufacturers in 15 states.

The cases, which are pending in federal and state courts, allege that pharmaceutical companies reported inflated drug process, which caused governments to pay higher reimbursements for drugs under Medicaid and other programmes.

The lawsuit brought by Ven-A-Care of the Florida Keys Inc is on behalf of the United States, Texas, Florida and California under federal and state False Claims Acts.