Have generic makers also faced False Claims Act liability?
Yes — Teva paid $25 million in October 2024 to resolve civil allegations that price-fixing on Medicare and Medicaid claims constituted false claims, creating a second layer of exposure beyond antitrust law and a recovery avenue for inflated government payments.
Yes. Because Medicare and Medicaid pay for many generic prescriptions, inflated prices can also give rise to False Claims Act liability. The Justice Department's Civil Division investigated whether generic manufacturers engaged in market allocation and price-fixing, paid illegal remuneration, and caused false claims to government health programmes. In October 2024 Teva agreed to pay $25 million to resolve those civil allegations, without admitting wrongdoing, alongside its separate $425 million Copaxone settlement. The theory is that the benefits a company receives under a price-fixing scheme can amount to illegal kickbacks, and claims for drugs sold at conspiracy prices are tainted. This creates a second layer of exposure beyond antitrust law, and it means federal programmes can seek recovery for inflated payments.