Teva Pharmaceutical Industries Ltd. Settles False Billing FCA Case With the US and State of Illinois

Illegal Billing Practices

New outlets report that Teva Pharmaceutical Industries Ltd. (“Teva”) has agreed to pay the U.S. and Illinois more than $27 million to resolve allegations that its units illegally paid a doctor to prescribe an antipsychotic drug to patients in federal care programs.”  According to the complaint filed in U.S. v. Reinstein, Teva “violated the U.S. False Claims Act by seeking to induce prescriptions of generic clozapine for Medicare and Medicaid beneficiaries by agreeing to pay $50,000 to an Illinois doctor and providing trips to Miami for him, his family and his employees, according to a statement released by the Justice Department.

The False Claims Act, 31 U.S.C. §§ 3729-3733, is a federal law that imposes liability on individuals and companies that defraud government programs.  The law includes a “qui tam” (or whistleblower) provision that allows people not affiliated with the government to file actions on the government’s behalf and giving them the ability to retain a portion of any recovered damages.

In a released statement, a representative of the Justice Department’s Civil Division noted that “[s]chemes such as the one alleged in this case undermine the health-care system and take advantage of vulnerable patients.”

The case settled by Teva is U.S. v. Reinstein, 12-09167, U.S. District Court, Northern District of Illinois.