Teva settles Medicaid false billing case tied to Chicago doctor

[riky]

Teva settles Medicaid false billing case tied to Chicago doctor

Teva Pharmaceutical Industries Ltd agreed to pay $27.6 million to settle charges that it paid kickbacks to a Chicago psychiatrist to induce him to prescribe an anti-schizophrenia drug to patients, resulting in more than 100,000 false Medicaid and Medicare claims. The world's largest generic drug manufacturer will pay about $15.5 million to the federal government and $12.1 million to the state of Illinois, according to statements from the U.S. Department of Justice and Illinois Attorney General Lisa Madigan. Tuesday's settlement resolves charges that two Teva units, Teva Pharmaceuticals USA Inc and IVAX LLC, violated the federal False Claims Act by making payments to the psychiatrist, Michael Reinstein, for nine years starting in August 2003.

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