Teva Engages In Settlement Talks Over Medicare Kickback Allegations
Portfolio Pulse from Vandana Singh
Teva Pharmaceutical Industries Ltd (NYSE:TEVA) is in settlement talks with the U.S. Department of Justice over allegations of using charitable organizations to pay Medicare patients' out-of-pocket costs, which is considered a kickback to boost sales of its drug Copaxone. The company is seeking to delay an appeal hearing and is optimistic about reaching a resolution. The lawsuit could result in up to $10 billion in damages under the False Claims Act.
June 18, 2024 | 6:24 pm
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Teva is in active settlement talks with the DOJ over allegations of using charitable organizations to pay Medicare patients' out-of-pocket costs for its drug Copaxone, which could result in up to $10 billion in damages under the False Claims Act.
The news of Teva's settlement talks with the DOJ over serious allegations of Medicare kickbacks is likely to negatively impact the stock price in the short term. The potential for up to $10 billion in damages under the False Claims Act adds significant financial risk, which investors will likely react to unfavorably.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100