Federal authorities alleged that Teva Pharmaceuticals (TEVA) donated hundreds of millions of dollars to a pair of foundations, but the payments were actually kickbacks to Medicare patients and designed to cover their out-of-pocket costs for a pricey medicine.
In a lawsuit filed in federal court in Boston, the Department of Justice accused the drug maker of using the charities — the Chronic Disease Fund and The Assistance Fund — to ensure that, from 2006 through 2015, Medicare patients did not have to make a co-payment or deductible for the Copaxone multiple sclerosis drug.
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