UPDATE: Teva To Pay Florida $27 Million To Settle Medicaid Fraud Claims
20 Juillet 2010 - 7:26PM
Dow Jones News
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