Generic pharmaceutical company Teva Pharmaceutical Industries Ltd. (TEVA) announced Friday that several of its US subsidiaries reached a settlement in principle to resolve claims brought by Ven-A-Care of the Florida Keys, Inc. on behalf of the United States, Texas, Florida, and California under federal and state False Claims Acts.
The company stated that together with many other pharmaceutical manufacturers, Teva is named in several civil lawsuits that relate to drug price reporting by manufacturers in about 15 states.
The cases, which are pending in federal and state courts, generally allege that the prices reported by pharmaceutical companies caused governments to pay inflated reimbursements for drugs under Medicaid or other programs. Medicaid is the United States health program for eligible individuals and families with low incomes and resources. However, Teva denies the allegations.
On execution of definitive settlement documents and certain government and court approvals, the settlement will resolve a lawsuit relating to federal contributions to all state Medicaid programs and claims of Texas, Florida, and California relating to their Medicaid programs. The company indicated that the settlement will eliminate the majority of the alleged damages asserted against Teva in the various drug pricing litigations.
Israel-based Teva further stated that it will record a charge of around $315 million in its fourth quarter results. This charge includes both the settlement in principle and a reserve for the remaining drug pricing lawsuits to which Teva is a party.
TEVA is trading at $57.46 down $0.46 or 0.79% on a volume of 1.485 million shares on the Nasdaq.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.