Settlement amount: $135 million
Date: January 2019
Claims: Medicaid fraud
Plaintiff: State of Illinois
Product: Various drugs
In recent years, Teva has been no stranger to big legal overhangs with national opioid suits and "pay-for-delay" allegations on the docket. But entering 2019, Teva got one lawsuit off the books when it settled with the state of Illinois on a Medicaid pricing fraud case.
In January, Teva agreed to pay $135 million to wrap up allegations that it and 46 other drugmakers fraudulently published inflated average wholesale prices that went into calculating Medicaid reimbursement rates. As a result, taxpayers overpaid for Teva drugs, the 2005 state suit argued.
After the deal was inked, state Attorney General Lisa Madigan flaunted the yield from that suit: The state had recovered more than $436 million in settlements from various companies, according to her office.
The settlement helped Teva put one challenge in the rearview mirror as it continues to face an industrywide generics price-fixing probe, a potential multibillion-dollar overhang in its opioid litigation and an ongoing $3 billion cost-cutting drive.
In October, Teva offered a whopping $23 billion "framework" deal to settle the thousands of opioid suits it faces. As part of the deal, the drugmaker would donate buprenorphine naloxone, an opioid addiction treatment, worth a list value of $23 billion over the next 10 years. The combined $23.25 billion deal far outshoots a similar global opioid offer from Purdue Pharma reportedly valued at up to $12 billion.