The state department of financial services filed the charges against internationals Allergan and Teva.
New York Governor Andrew Cuomo announced that the Department of Financial Services (DFS) has filed insurance fraud action against international opioid manufacturers Teva and Allergan.
The DFS’ filing claims that the firms engaged in dubious marketing strategies for their drugs.
The insurance fraud action alleges that Teva and Allergan had engaged in fraudulent marketing and promotional campaigns. Those campaigns, said the filing, misrepresented the effectiveness and safety of opioid drugs in order to broaden the opioid market for the promotion of their drug products. As a result, claimed the filing, the opioid crisis was perpetuated, and New York consumers ended up paying higher costs for their insurance coverage.
Cuomo announced the filing of charges and the initiation of administrative proceedings against Teva Pharmaceutical Industries, Ltd, as well as its subsidiaries, Teva Pharmaceuticals USA, Inc., Watson Laboratories, Actavis LLC, Actavis Pharma, Inc., Cephalon, Inc., and Actavis Elizabeth LLC. The filings and charges were also made against Allergan PLC as well as its subsidiary Allergan Finance LLC.
This represents the third insurance fraud action wave in the DFS’ ongoing opioid crisis investigation.
The DFS has been looking into the path taken by entities that built and perpetuated the opioid crisis.
Teva has been a significant opioid manufacturer in the United States. It manufactures about a fifth of the opioid products sold in the state from 2006 through 2014. Teva manufactured its branded opioid drugs and its Actavis subsidiaries manufactured generic versions of those same medications. Allergan also manufactured opioid drugs within that span of time.
“New York will continue to aggressively investigate the bad actors that caused the opioid crisis – an American tragedy that has taken too many lives and caused irrevocable harm to communities in our state and across the country,” said Governor Cuomo in his announcement of the DFS insurance fraud action. “Everyone who has been affected by opioids deserves justice and we will make every effort to deliver it to them by pursuing the companies that defraud the public and holding them accountable to the fullest extent of the law.”