False Claims Act Suit Settled Against Teva Pharmaceuticals for $27.6M

Illinois Attorney General Lisa Madigan announced a $27.6M federal and state settlement with Teva Pharmaceuticals USA and a subsidiary to resolve allegations of False Claims Act violations.

Teva Pharmaceuticals allegedly made payments to Michael Reinstein, a Chicago physician, in return for prescribing generic clozapine, an anti-psychotic medication, to thousands or Medicare and Medicaid patients. 

The alleged scheme resulted in the submission of more than 100,000 false claims to Illinois Medicaid and Medicare Part D.

"Teva Pharmaceuticals pushed its drug onto thousands of vulnerable patients without regard to their health and at the expense of the state Medicaid program and Illinois taxpayers," said Madigan.

Under the settlement terms, Teva must pay the federal government close to $15.5 million and the state of Illinois more than $12.1 million, plus interest.

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