SAN JOSE, Calif. (AP) - A drug company has agreed to pay $1.6 million for substance abuse treatment to settle a lawsuit from two California counties alleging misleading marketing practices, officials announced Wednesday.
The settlement also requires Israel-based Teva Pharmaceutical Inc. to refrain from promoting opioid painkillers for so-called off-label use.
The payment settles a lawsuit filed by Santa Clara and Orange counties in 2014 alleging that painkiller makers downplayed the risks of their drugs and exaggerated their benefits. A judge in Orange County needs to approve the settlement, which also requires the company to disclose the risk of addiction anytime it touts the benefits of its painkillers.
Teva also agreed to refrain from false adverting and to disclose sponsorship of supplements discussing opioids placed in medical journals.
“Our residents have borne the costs of the deceptive marketing scheme conducted by opioid drug companies,” said Danny Chou, an assistant Santa Clara County counsel. “These costs include not only the horrors of addiction for entire families and communities, but also increased crime due to addiction outstripping treatment options. We appreciate Teva’s willingness to work with us to fight this growing epidemic.”
Four other major pharmaceutical companies remain as defendants.
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