DOJ Brings FCA Lawsuit Against Teva in Connection with Donations to Charitable Organization

• September 21, 2020

• Kathryn A. Campbell , McGuireWoods LLP

Teva Pharmaceutical Industries Ltd. (Teva), an Israel-based drug maker, was sued by the United States in Boston over claims that Teva violated the federal False Claims Act in connection with its drug Copaxone. The case is United States v. Teva Pharmaceuticals USA Inc et al., No. 20-11548 (D. Mass.). The complaint alleges that Teva defrauded Medicare and other government health programs by channeling $300 million through two charitable foundations, the Chronic Disease Fund and The Assistance Fund, to boost sales of its best-selling drug Copaxone, which treats multiple sclerosis. Copaxone was a major source of Teva’s profits and revenues for two decades before its patent expired, which opened the market to generic competition.

ARTICLE TAGS

• Health Care Liability and Litigation Practice Group
• Fraud and Compliance