Teva Pharmaceutical Industries on Tuesday announced a $4.35 billion proposed nationwide settlement that could resolve thousands of lawsuits over the drugmaker's alleged role in the US opioid epidemic, Reuters reported. The proposal calls for Teva to pay state and local governments up to $3.7 billion in cash over 13 years plus a contribution of $1.2 billion worth of the opioid overdose reversal drug naloxone. Israel-based Teva also will pay approximately $100 million to Native American tribes and pay attorneys fees incurred by the states, local governments and tribes. Teva's proposed settlement would allow state and local governments to opt for additional cash in lieu of an allotment of the overdose medication, at a value of 20% of the drug's list price. The settlement's cash portion is higher than Teva's chief executive suggested in May. CEO Kare Schultz told analysts at the time that he expected the company to pay around $2.6 billion in cash and medicine to reach a nationwide settlement. Iowa Attorney General Tom Miller, a lead negotiator for the states, called the proposal "another major step in addressing the opioids crisis." "We expect these funds to make a significant difference in preventing fatal overdoses and treating opioid addiction disorder," Miller said, according to Reuters . The Teva settlement will not be finalized unless a sufficient number of state and local governments agree to accept the terms. Teva has already agreed to settlements with West Virginia, Texas , Florida, Rhode Island and Louisiana, and the value of those will be included in the proposed $3.05 billion cash payout. The state of New York will not participate in the settlement, and continues to seek a judgment against Teva. US states, cities and counties have filed more than 3,000 lawsuits against opioid manufacturers, distributors and pharmacies, accusing them of downplaying their addiction risk and failing to stop pills from being diverted for illegal use. The US opioid crisis has caused more than 500,000 overdose deaths over the past two decades, including more than 80,000 in 2021 alone, according to government data. In a separate incident, the European Commission last year announced that Teva is being investigated by EU antitrust regulators over whether it illegally hindered rivals’ access to its multiple sclerosis medicine Copaxone. According to the announcement, the probe will look into whether Teva has abused its dominant market position in breach of EU antitrust rules, which could lead to hefty fines. Related articles: Teva agrees to settlement in price-fixing case in the US Teva to pay Nevada $193 million Teva reaches settlement with Texas over opioid lawsuit 'Israel's vaccination campaign is model for entire world' Several months earlier, European Union regulators fined Teva for colluding to delay a cheaper generic version of modafinil, a blockbuster sleep disorder drug. In 2018, the Israeli justice ministry fined Teva $22 million for bribing foreign officials to win business in Russia, Ukraine and Mexico, rather than pressing charges in court against the drug-maker.
