US: Teva to pay $512 million to settle claims of delayed generic Provigil

Teva Pharmaceutical Industries announced on Monday, April 20th has agreed to pay $512 million to settle a class action lawsuit. The suit claimed that Cephalon, which Teva acquired back in 2011, used anticompetitive settlements to delay generic versions of its wakefulness drug Provigil.

According to a settlement motion filed last Friday, this is the largest settlement ever paid to drug buyers over allegations of intentional planning to delay the introduction of generic drugs.

The lawsuit was filed nine years ago by drug wholesalers and retailers, who alleged that Cephalon entered into settlements in patent lawsuits with Teva, Mylan and Ranbaxy Laboratories to prevent generic versions of Provigil from being marketed until 2012.

The plaintiffs also alleged that these settlements violated federal antitrust laws.

Based on a court filing published Friday, Mylan and Ranbaxy, which are co-defendants in this case, have not signed onto the settlement.

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