Teva Settles for $450 Million Amid Allegations of Charity Kickbacks

Teva Pharmaceutical Industries Ltd will pay $450 million to settle allegations of using charities to provide kickbacks for its multiple sclerosis drug Copaxone. The U.S. Department of Justice announced the settlements, which also include claims of price-fixing for generic drugs. Teva denies any wrongdoing.

Teva Pharmaceutical Industries Ltd has reached a settlement agreement to pay $450 million in response to allegations of using charitable donations to facilitate kickbacks, essentially boosting the sales of its multiple sclerosis drug, Copaxone.

The U.S. Department of Justice revealed these settlements on Thursday, which are part of an expansive investigation into drugmakers' financial involvement with patient charities. This probe has already yielded over $1 billion in settlements from 12 pharmaceutical companies, four charities, and one pharmacy.

In addition to the primary settlement, Teva will resolve a separate civil complaint for $25 million related to claims of price-fixing and market allocation for generic drugs. Despite settling, Teva contends its innocence, labeling its donations as supportive of patient access to critical medicines.

(With inputs from agencies.)