Teva shells out $135M to wrap Illinois AG's Medicaid pricing fraud suit

courthouse
Teva agreed to a $135 million settlement with Illinois to resolve allegations of fraudulent pricing. (Pixabay)

Fourteen years after Illlinois' attorney general accused Teva of defrauding Medicaid with inflated pricing, the company has agreed to pay $135 million to wrap up the allegations.

The settlement stems from a 2005 lawsuit Attorney General Lisa Madigan filed against Teva and 46 other pharma companies, alleging the drugmakers fraudulently published inflated average wholesale prices that went into calculating Medicaid reimbursement rates. As a result, taxpayers overpaid for Teva drugs, the suit argued.

A Teva spokesperson declined to comment further on the lawsuit.

Free Daily Newsletter

Like this story? Subscribe to FiercePharma!

Biopharma is a fast-growing world where big ideas come along daily. Our subscribers rely on FiercePharma as their must-read source for the latest news, analysis and data on drugs and the companies that make them. Sign up today to get pharma news and updates delivered to your inbox and read on the go.

Since filing the suit, Madigan has recovered more than $436 million in settlements from various companies, according to her office. Litigation is still moving forward against nine drugmakers.

RELATED: Teva's escaped the generics 'death spiral,' but it can't take all the credit: CEO

The settlement helps Teva put one challenge in the rearview mirror as it heads into 2019 with other overhangs. For one, the company is involved in an industrywide generics price-fixing probe, along with Mylan and other generics players. Other challenges include a massive restructuring at Teva and an overall tough environment in generics pricing.

But this week at the J.P. Morgan Healthcare Conferece in San Francisco, Teva CEO Kåre Schultz said generic pricing challenges have stabilized, and that Teva’s investors can expect predictability moving forward after a few rough years.

Suggested Articles

The FDA has handed down its decision against Sanofi and Lexicon's Zynquista.

Analysts with Cortellis expect seven blockbuster drug launches in markets across the world this year. AbbVie's upadacitinib leads the pack.

The new Alcon shares will be listed on the Swiss Exchange and the New York Stock Exchange on April 9 under the ticker “ALC.”