Teva Whistleblower Lawsuit Results in $54M Settlement

A lawsuit filed under the False Claims Act (FCA) against Teva Pharmaceuticals by two whistleblowers has resulted in a $54 million settlement. The former employees who filed the whistleblower lawsuit may be entitled to receive up to $16 million of the payout.

Teva Whistleblower Lawsuit Results in Multi-Million Dollar Settlement

The settlement agreement was announced on Feb. 12, resolving a case that contained allegations of kickback schemes going back as far as 2003.

According to the plaintiffs, two former Teva sales representatives who initially filed their suit in 2013, the pharmaceutical company began holding speaking events in 2003 regarding two drugs, Copaxone and Azilect. The plaintiffs claim that doctors who gave speeches about these drugs at the Teva events were paid between $1,500 and $2,700 in speaker or consultant fees for each program.

However, according to the plaintiffs, these payments were allegedly meant as incentives for doctors to prescribe Copaxone, a multiple sclerosis medication, and Azilect, a Parkinson’s disease drug. Additionally, the whistleblowers claim that pharmacies that filled the prescriptions for these drugs submitted reimbursement claims to government-funded healthcare programs including Medicaid. Under the False Claims Act and Anti-Kickback Statute, it is illegal to provide incentives for doctors to make referrals for services that are payable by federal healthcare programs.

About the False Claims Act and Anti-Kickback Statute

Offering kickbacks, or payments, in order to incentivize doctors to recommend drugs to patients is illegal under the False Claims Act and the Anti-Kickback Statute. Under these laws, whistleblowers who have direct knowledge of fraud committed against the government are able to file lawsuits on the government’s behalf.

These lawsuits are called whistleblower or qui tam lawsuits. These lawsuits are generally filed under seal, meaning that they are kept secret in order to give the Justice Department time to investigate the claims and protect the whistleblower from retaliation by their employer.

Often, these whistleblowers are current or former employees of the company or entity engaging in fraud. As whistleblower lawsuits must involve fraud against the government, these suits generally involve allegations of fraud related to health care programs, the military, or other government contractors. In exchange for reporting this fraud, whistleblowers are offered several protections under the law, including freedom from retaliation and the right to remain anonymous.

Additionally, whistleblowers are generally entitled to a portion of any compensation recovered through the false claims lawsuit. This percentage may be as high as 30 percent of any recovered funds. More than $62 billion has been recovered through whistleblower lawsuits and the False Claims Act since 1987.

If you work for a company that may be defrauding the government, you may be eligible to hire an experienced False Claims attorney and file a whistleblower lawsuit. Employees who file whistleblower lawsuits will be protected from retaliation, including being fired, harassed, or demoted by their employer. Additionally, you may be entitled to a percentage of any winnings recovered.

This article is not legal advice. It is presented
for informational purposes only.