Frazer, Pa.-based Cephalon — a subsidiary of Israel-based Teva Pharmaceuticals — reached a $125 million settlement with 48 states after an investigation found Cephalon purposefully delayed generic versions of its sleep disorder drug Provigil.
The states alleged Cephalon "made misrepresentations" to the U.S. Patent and Trademark Office, which "damaged the states and eligible consumers," according to the settlement. However, Cephalon denied the allegations.
The settlement allocates $35 million for consumers who purchased Provigil.
In May 2015, Cephalon reached a $1.2 billion settlement with the Federal Trade Commission over issues with the same drug. The settlement resolved an antitrust lawsuit regarding Cephalon illegally blocking generic competition with Provigil.
Pennsylvania U.S. District Judge Mitchell Goldberg will review the settlement. Mr. Goldberg has overseen Cephalon's other litigation involving Provigil.
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