FOLLOW US

Fri

June 5, 2026

Business August 19, 2020 3 mins read

Teva allegedly used charitable foundations to funnel illegal kickbacks to Medicare patients

Business ı By Marivic Cabural Summers

0 Comments

Teva

Teva Pharmaceuticals (NYSE: TEVA) is facing another legal challenge, less than a year after reaching a global settlement to resolve all claims related to its role in the opioid epidemic across the United States.

On Tuesday, U.S. Attorney for the District of Massachusetts Andrew Lelling filed a civil complaint against Teva Pharmaceuticals USA and Teva Neuroscience (collectively Teva) for allegedly violating the False Claims Act.

In the lawsuit, U.S. Attorney Lelling alleged that Teva caused the submission of false claims to Medicare due to the kickbacks it paid in the form of unlawful co-pay subsidies for patients using Copaxone, its drug for multiple sclerosis (MS).

The pharmaceutical company allegedly used two charitable foundations to illegally pay Medicare patients’ co-pays for Copazone while steadily increasing the price of the drug.

Teva allegedly “knowingly and willfully violated the anti-kickback statute”

Teva allegedly paid more than $300 million in illegal kickbacks to Chronic Disease Fund (CDF) and The Assistance Fund (TAF) to cover the Copazone co-pays for Medicare patients from 2006 to 2015.

During the relevant period, Teva increased the price of Copaxone at a rate over 19 times the rate of inflation from approximately $17,000 per year to over $73,000 per year” while subsidizing the co-pays for the drug through CDF and TAF.” The pharmaceutical company “knowingly and willfully violated the anti-kickback statute…,” according to the complaint.

The scheme allowed Teva to generate profits that are far greater than the illegal kickbacks it funneled to the charitable foundations.

In a statement, U.S. Attorney Lelling said, “Teva’s alleged kickbacks undermined the Medicare program’s co-pay structure, which Congress created as a safeguard against inflated drug prices.”

On the other hand, Phillip Coyne, Special Agent in Charge at the U.S. Department of Health and Human Services (HHS) Office of Inspector General, commented, “Drug manufacturers that offer kickbacks in order to boost profits – as alleged in this case – drive up health care costs for everyone and undermine the public’s trust in the health care system. Our agency, working closely with our law enforcement partners, will continue to thoroughly investigate such corrosive schemes.”

Meanwhile, DOJ Civil Division Acting Assistant Attorney General Ethan P. Davis vowed that the department “will continue to root out these unlawful kickback arrangements that undermine the integrity of federal health care programs.”

12

Previous Article

2020 Democratic Convention off to slow start with disappointing ratings

Read More
Marivic Cabural Summers
2032 Posts

Marivic Cabural Summers

Marivic has been a freelance writer/journalist for nearly 20 years. She strictly adheres to the ethical standards in journalism. For her, integrity is everything. Readers deserve to know that real story. She previously worked as research analyst and editor at Lombardi Financial and has written for various websites including The Motley Fool, ValueWalk, IcannWiki and was a news writer/radio program producer at Nation Broadcasting Corporation. Marivic holds a BA in Mass Communications.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
Arizona January 11, 2025
Kelly Warner Law Firm Blames USA…

In what appears as a desperate attempt to defend multiple…

By – USA Herald
Arizona January 4, 2025
Aaron Kelly Law Firm Resorts To…

Attorney Aaron Kelly and his law partner Daniel Warner are…

By – Jeff Watterson
Arizona December 12, 2024
Arizona Bar Opens Investigation on Attorney…

USA Herald recently reported on a developing story involving Attorneys…

By – Paul O'Neal
America June 2, 2026
South Carolina Jury Clears Store Owner…

A South Carolina courtroom erupted with emotion Monday after a…

By – Tyler Brooks
Featured June 2, 2026
From a Casual Night Out to…

It Doesn’t Happen Here’: Quiet Suburb Left Shattered After Fatal…

By – Tyler Brooks
Investigates June 2, 2026
BALLOT BOX CRISIS: Will Latest Shockwaves…

BALLOT BOX CRISIS: WILL LATEST SHOCKWAVES DESTROY PUBLIC TRUST? By…

By – Tyler Brooks
Business June 2, 2026
From Folklore to High Finance: The…

Wall Street and Global Powers Monetize UFO Craze By Tyler…

By – Tyler Brooks
America June 1, 2026
Sleeping Dog Documentary Chronicles Jeremy Corbell’s…

The new documentary Sleeping Dog arrives at a pivotal moment…

By – Jackie Allen
America June 1, 2026
Kendall Jenner, Jacob Elordi and the…

I’ve been writing about royals and celebrities for 20 years.…

By – Nathan Kay
America June 1, 2026
Kendall Jenner, Jacob Elordi and the…

I’ve been writing about royals and celebrities for 20 years.…

By – Nathan Kay
America June 1, 2026
43-year-old Man Hospitalized After a Stranger…

Stranger shoots San Antonio man, 43, through door By Tyler…

By – Tyler Brooks
America June 1, 2026
Hurricane Season Starts Today – Here’s…

Texas faces 20% hurricane risk as season begins By Tyler…

By – Tyler Brooks
America June 1, 2026
Rare Blue Micromoon Lights Up the…

Skywatchers are in for a unique celestial event as a…

By – Jackie Allen
America May 31, 2026
Murder-for-hire Ends with Life Sentence for…

A shocking Murder-for-hire case that spanned multiple states has concluded…

By – Jackie Allen
America May 31, 2026
Frank Lloyd Wright and the Taliesin…

In The Killer and Frank Lloyd Wright, veteran true-crime author…

By – Jackie Allen
America May 31, 2026
Frank Lloyd Wright and the Taliesin…

In The Killer and Frank Lloyd Wright, veteran true-crime author…

By – Jackie Allen
America May 30, 2026
Hollywood at a Crossroads: Spencer Pratt…

Los Angeles has its primary election this Tuesday, and the…

By – Jackie Allen
America May 30, 2026
Hayden Panettiere has a Memoir About…

Hayden Panettiere is revealing the emotional toll of growing up…

By – Jackie Allen
America May 29, 2026
Blue Origin Rocket Explodes in Massive…

Blue Origin suffered a major setback Thursday night when one…

By – Jackie Allen
America May 28, 2026
Alien Coneheads: New DNA Study Doesn’t…

The mystery surrounding the so-called Alien Coneheads of Peru has…

By – Jackie Allen
America May 28, 2026
Trump’s UFO files reveal mysterious flying…

The newly released UFO Files from the Trump administration have…

By – Jackie Allen
America May 28, 2026
Trump’s Alien.gov Reveal Turns Into Immigration…

INSIDE THIS REPORT What millions thought would be a historic…

By – Samuel Lopez
America May 28, 2026
Trump’s UFO files reveal mysterious flying…

The newly released UFO Files from the Trump administration have…

By – Jackie Allen
America May 28, 2026
Who’s Lying? E. Jean Carroll Faces…

Author and columnist E. Jean Carroll is once again at…

By – Jackie Allen
America May 28, 2026
Super El Niño: Will 2026 be…

Scientists across the globe are increasingly warning that a potential…

By – Jackie Allen
America May 28, 2026
Biden Sues Justice Department Over Planned…

Former President Joe Biden has launched a new legal battle…

By – Jackie Allen
America May 28, 2026
Anna Kepner Killing: Step-Brother Accused in…

The shocking Anna Kepner Killing case took another dramatic turn…

By – Jackie Allen
Florida News June 1, 2026
Manhunt underway for Florida felon Adriel…

Manhunt underway for Florida felon Adriel Martinez after release breach…

By – Tyler Brooks
Featured June 1, 2026
Hawaii Warns Communities of Impending Kilauea…

Hawaii Warns Communities of Impending Kilauea Ashfall By Tyler Brooks…

By – Tyler Brooks
Florida News June 1, 2026
Pentagon UFO file reveals human shape…

Pentagon UFO file reveals human shape pulling 600g By Tyler…

By – Tyler Brooks
California News May 31, 2026
Jamie Lee Curtis’ sister Kelly Lee…

Jamie Lee Curtis’ sister Kelly Lee Curtis dies at 69…

By – Tyler Brooks
Business May 31, 2026
Tech giants cut 142,000 jobs to…

Tech giants cut 142,000 jobs to fund AI boom By…

By – Tyler Brooks
Financial Investigations May 31, 2026
DOJ seizes $225M in historic crypto…

DOJ seizes $225M in historic crypto scam bust By Tylor…

By – Tyler Brooks
Health June 1, 2026
New Pill Doubles Survival for Pancreatic…

Pancreatic cancer pill doubles life to 13 months By Tyler…

By – Tyler Brooks
California News May 31, 2026
FDA warns public as cookie firm…

FDA warns public as cookie firm rejects urgent recall request…

By – Tyler Brooks
Health May 31, 2026
Trump orders CDC to slash childhood…

Trump orders CDC to slash childhood vaccines from 17 to…

By – Tyler Brooks
Health May 30, 2026
USDA warns Americans over Salmonella in…

USDA warns Americans over Salmonella in meat products By Tylor…

By – Tyler Brooks
America May 28, 2026
GKN Aerospace’s Biggest Battle May Not…

By Samuel López | USA Herald The immediate danger of…

By – Samuel Lopez
America May 24, 2026
Garden Grove Chemical Crisis Sparks Class…

By Samuel López | USA Herald A full-scale legal and…

By – Samuel Lopez
High Profile Court Cases May 31, 2026
Supreme Court signals 27 states could…

Supreme Court signals 27 states could ban trans female athletes…

By – Tyler Brooks
Sports May 31, 2026
Mauricio Pochettino sounds alarm on Chris…

Mauricio Pochettino sounds alarm on Chris Richards injury By Tylor…

By – Tyler Brooks
International May 30, 2026
USMNT star Chris Richards tears two…

USMNT star Chris Richards tears two ankle ligaments By Tylor…

By – Tyler Brooks
America May 28, 2026
“Money” Mayweather Tucks Tail: $100 Million…

Floyd Mayweather has beaten every opponent who ever climbed into…

By – Samuel Lopez
America May 27, 2026
Mackenzie Shirilla Sent Text Messages to…

Mackenzie Shirilla is once again at the center of public…

By – Jackie Allen
Entertainment May 26, 2026
Timothée Chalamet, Kylie Jenner ,Spike Lee,…

CLEVELAND, Ohio – A playoff showdown turned into a full-scale…

By – Tyler Brooks

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter