Teva False Claims Settlement Stems From Kickbacks To Single Doctor

Teva reaches $27.6 million settlement with Department of Justice and the state of Illinois over prescriptions for generic clozapine; deal comes as Ivax subsidiary is in final year of five-year corporate integrity agreement.

Teva Pharmaceuticals USA Inc.’s $27.6 million settlement with the Department of Justice and state of Illinois to resolve kickback allegations ranks as one of the smallest in the pharmaceutical sector. But the fact it involves alleged payments to just one doctor shows how tenacious the government can be in pursuing drug makers for healthcare fraud.

In a March 11 release announcing the settlement, the DOJ said it resolves allegations that Teva and its Ivax...