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Teva to Pay $27.6 Million to Settle Clozapine Payoff Case

Teva Pharmaceutical Industries Ltd. agreed to pay the U.S. and Illinois $27.6 million to resolve allegations that its units illegally paid a doctor to prescribe a dangerous antipsychotic drug to patients in federal care programs.

Units of Teva, the biggest maker of generic drugs, violated the U.S. False Claims Act by seeking to induce prescriptions of generic clozapine for Medicare and Medicaid beneficiaries by agreeing to pay $50,000 to an Illinois doctor and providing trips to Miami for him, his family and his employees, according to a Justice Department statement.