Teva Pharmaceutical Industries will take a $315 million charge in its fourth quarter in connection with a settlement to resolve a drug-pricing lawsuit brought by Ven-A-Care of the Florida Keys against several of the company's U.S. subsidiaries, according to a Teva press release.
Israel-based Teva, a generic pharmaceutical company, said it is named, along with other pharmaceutical companies, in numerous civil lawsuits alleging the prices it reported caused Medicaid and other government programs to pay inflated reimbursements. Teva denies the allegations, which Ven-A-Care brought on behalf of the U.S., Texas, Florida, and California under federal and state False Claims Acts.
Teva said the charge would include both the settlement and a reserve for remaining drug pricing lawsuits filed against the company. The settlement in principal awaits definitive settlement documents and government and court approvals. The preliminary settlement will eliminate most of the alleged damages against Teva in the various drug-pricing lawsuits, the company said.
Read the release on the Teva settlement.