Teva Pharmaceuticals has reached a $54 million settlement in a lawsuit filed by two whistleblowers concerning alleged violations of the False Claims Act and the Anti-Kickback Statute. Teva’s compliance argument did not hold water, the judge found.
The False Claims Act (FCA) prohibits companies from overcharging or otherwise defrauding the U.S. federal government. Individuals who discover fraud can file a complaint on the government’s behalf—known as qui tam claims—and collect up to 30 percent of the proceeds of a successful lawsuit. The Anti-Kickback Statute (AKS) criminalizes, among other things, “knowingly or willingly” offering or paying a person “remuneration,” in the form of kickbacks, bribes, or rebates, to “induce” that person to “recommend” the purchase of a drug covered by a federal healthcare program.
