Teva Pharmaceuticals agreed to pay a total of $450 million to settle allegations of paying kickbacks to charitable foundations to increase sales of a multiple sclerosis drug and participating in a price-fixing scheme with other generic companies. The Department of Justice accused Teva of using the foundations to eliminate copayments for Medicare patients and raised the drug’s price significantly. This violated the Anti-Kickback Statute, which prohibits offering remuneration to induce federal programs to purchase drugs. Teva’s settlement is the largest of its kind, with $425 million addressing the kickback allegations and an additional $25 million for the price-fixing charges.
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