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Teva Pharma Settles Some Medicaid Drug Price Suits

From Associated Press (February 5, 2010)

NEW YORK -- Teva Pharmaceutical, the world's largest generic drugmaker, says it is settling several lawsuits related to Medicaid reimbursement for its products, and is setting aside $315 million to cover the settlement and other suits.

The Israeli company says the settlement would end lawsuits involving the U.S. government and the states of Florida, Texas, and California. It says the lawsuits allege Teva Pharmaceutical Industries Ltd. inflated the prices of products to get more reimbursement money from Medicaid programs.

Teva says the settlement would end the claims involving federal contributions to Medicaid programs, and claims by the three states. It says other suits remain, but those settlements would resolve most of the alleged damages. Teva denies the allegations.


Posted: February 2010