Teva Pharmaceuticals will pay the United States $15.5 million and the state of Illnois $12 million in a federal civil health fraud suit settlement, involving a doctor who was the largest subscriber of clozapone in the U.S. in 2013, it was announced by the U.S. Attorney's Office Tuesday.
Teva allegedly falsely billed payments to a Chicago psychiatrist, who was authorized to prescribed anti-psychotic drugs to thousands of Medicare patients, per the release.
The U.S. Attorney's Office sued Dr. Michael J. Reinstein, alleging he took kickbacks from drug companies while submitting false claims, per the report, including a $50,000 paycheck from Teva for one year of "consulting." In order to get that money, Reinstein schemed to switch his patients to a generic drug.
Authorities said Reinstein was the largest prescriber of clozapine in the United States in 2013.
Teva Pharmaceuticals owns a facility in Montgomery Township.