Teva Pharmaceutical Industries Ltd. (TEVA, TEVA.TV) agreed to a $27 million settlement with Florida to resolve claims of Medicaid fraud in the Sunshine State.

The deal, which partially resolves two Leon County Medicaid fraud lawsuits, was negotiated by the state Attorney General's office. The cases are ongoing against Mylan Inc. (MYL), Actavis Inc., Watson Pharmaceuticals Inc. (WPI), and Sandoz Pharmaceuticals, a unit of Novartis AG (NVS, NOVN.VX).

Florida's general revenue fund will receive nearly $3.5 million from the settlement, which resolves allegations the Israel-based generic-drug maker knowingly set and reported inflated prices for medications dispensed by pharmacies and other providers who were then reimbursed by the Florida Medicaid program. The Agency for Health Care Administration, which is responsible for administering Medicaid, will receive more than $7.1 million for the losses sustained by the program.

Teva and numerous other pharmaceutical companies were named in civil lawsuits that allege they overcharged the Medicaid system for drugs in about 15 states. Teva took a $379 million legal settlements charge in the fourth quarter as several of its U.S. subsidiaries reached settlement agreements in the drug-pricing lawsuit.

"Teva denies the allegations in the complaints and believes that its conduct has been appropriate and in compliance with all governing laws and standard industry practices," Teva spokeswoman Denise Bradley said in a statement.

"The settlement does not reflect any admission of liability or change in this belief, however we are pleased to put this matter behind us," she added.

Teva had 2009 global sales of $13.9 billion. The company's American depositary shares were recently down 1.7% to $53.60.

-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com

-By Thomas Gryta, Dow Jones Newswires; 212-416-2169; thomas.gryta@dowjones.com