Teva Pays $135M to Settle Illinois Medicaid Drug Price Case

Teva Pharmaceuticals USA Inc. agreed to pay $135 million to resolve allegations by the state of Illinois that the drug company inflated drug prices used when setting Medicaid reimbursement rates.

The lawsuit, filed in 2005 in the the Circuit Court of Cook County, alleged Teva and affiliated defendants, including Barr Laboratories Inc., Watson Pharma, and Duramed Pharmaceuticals Inc., violated state law by setting fraudulent and inflated prices for drugs covered by the state’s Medicaid program. Teva then used the price difference, or spread, for marketing and promotional purposes, the settlement said.

“Defendants have defeated the intent of the Medicaid ...