Teva Pharmaceuticals to pay New York $523 million to settle claims from its role in opioids crisis

Teva Pharmaceuticals agreed Thursday to pay New York $523 million to settle claims stemming from the company’s role in the opioids crisis.

It’s the largest settlement New York has reached with an individual opioid defendant and raises the total amount secured from opioid manufacturers and distributors to more than $2 billion to combat the damage the pills have caused.

The settlement was announced by New York Attorney General Letitia James and Teva in a quarterly earnings announcement.

"Teva has also reached an agreement in principle with the Attorney General of New York that settles the state’s and its subdivisions’ opioid-related claims. We have updated the reserve to account for the premium," the company’s earnings release said.

Teva reached a tentative nationwide settlement of $4.2 billion in July to settle all opioids-related litigation, which is still awaiting approval. New York gets a piece of that plus more from a successful lawsuit against Teva in Suffolk County.

"Teva knowingly and intentionally misled New Yorkers and the American people about the deadly dangers of opioids, and last year, a jury found them responsible for the devastation and destruction they have caused," James said in a statement. "You cannot put a price on lives lost, addiction suffered, and families torn apart, but with the more than $2 billion we have now delivered to New Yorkers, we can continue to rebuild and recover."

New York accused Teva of misrepresenting its products for decades and flooding the market with dangerous prescription drugs. However, the settlement does not require Teva to admit to this practice.

"No part of this Agreement, including its statements and commitments, shall constitute evidence of any liability, fault, or wrongdoing by Teva or any other Released Entity," the agreement said.

The settlement also resolves administrative charges the New York Department of Financial Services brought against Teva for alleged insurance fraud.

"The false information that Teva and other opioids manufacturers propagated about the safety of their drugs inflicted tremendous damage on the lives of countless people, while also abusing the health insurance system," New York's Superintendent of Financial Services, Adrienne Harris, said in a statement. "No monetary penalty can undo the immeasurable harm the opioid crisis has dealt to families across the country, but DFS is proud to have played a role in bringing about this resolution, holding opioid manufacturers and distributors accountable for their actions."