Feb 6 2010
Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA) announced today that
several of its subsidiaries in the United States reached a settlement in
principle to resolve claims brought by Ven-A-Care of the Florida Keys,
Inc. on behalf of the United States, Texas, Florida, and California
under federal and state False Claims Acts.
Together with many other pharmaceutical manufacturers, Teva is named in
numerous civil lawsuits that relate to drug price reporting by
manufacturers in about 15 states. The cases, which are pending in
federal and state courts, generally allege that the prices reported by
pharmaceutical companies caused governments to pay inflated
reimbursements for drugs under Medicaid or other programs. Teva denies
the allegations.
Upon execution of definitive settlement documents and certain government
and court approvals, the settlement will resolve a lawsuit relating to
federal contributions to all state Medicaid programs and claims of
Texas, Florida, and California relating to their Medicaid programs. The
settlement will eliminate the majority of the alleged damages asserted
against Teva in the various drug pricing litigations.
Teva will record a charge of approximately $315 million in its fourth
quarter, 2009 results. This charge includes both the settlement in
principle and a reserve for the remaining drug pricing lawsuits to which
Teva is a party.
SOURCE Teva Pharmaceutical Industries Ltd.,