Life Sciences

Teva settles false claims allegations in Massachusetts

Pharma Compliance Alert, January 7, 2009

Teva Pharmaceuticals paid $7 million to settle allegations it defrauded the Massachusetts Medicaid Agency, MassHealth, according to a press release from the Massachusetts Attorney General’s Office.

Teva and its wholly-owned subsidiary, Ivax Corporation, allegedly falsely inflated the prices they reported to national pharmaceutical price reporting services. MassHealth used those allegedly inflated prices to set reimbursement amounts and as a result overpaid for Medicaid prescriptions.

The Commonwealth recovered a total of $7.475 million from previous settlements with Dey, Barr Laboratories, Duramed Pharmaceuticals, Ethex Corporation, and Roxane Laboratories. The case against six additional defendants is ongoing.


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