BOSTON (Legal Newsline) - A federal judge's ruling is bad news for Teva Pharmaceuticals, which is accused of violating kickback laws by donating funds to groups that helped patients make co-payments on its multiple sclerosis drug Copaxone.
Judge Nathaniel Gorton, of Boston, on July 14 granted partial summary judgment to the United States in its lawsuit against Teva, whose motion he denied. The federal government says Medicare was defrauded when Teva provided the co-pays, ensuring Medicare would pay the for the rest of the prescription.
Gorton was receptive to the government's arguments from the start, denying most of Teva's motion to dismiss in 2021. Court documents say Teva donated $350 million from 2006-17 to two foundations that provided Copaxone co-pay assistant.
During that time, Teva raised the price paid by pharmacies to Teva from about $17,000 per year to more than $85,000 per year - "nearly 20 times the rate of inflation," Gorton wrote. The government said Teva's relationship with the two co-pay groups violated the Anti-Kickback Statute, as well as the False Claims Act (which covers alleged false claims made to the federal government for repayment)."
Gorton's order grants summary judgment to the government on materiality, causation and damages under the FCA. It said claims submitted to Medicare for services resulting from kickbacks are "materially false or fraudulent for purposes of the FCA."
As for damages, Gorton chose to follow the federal government's suggestion that the correct measure is the entirety of its expenditures for claims resulting from illegal kickbacks.