New York Charges Teva, Allergan With Insurance Fraud Over Opioid Claims

New York state filed civil charges on Tuesday accusing Teva Pharmaceutical Industries Ltd and Allergan Plc with insurance fraud for downplaying the risks of their opioid painkillers to patients and doctors.

Governor Andrew Cuomo said the charges by New York’s Department of Financial Services are the third this year in that regulator’s opioid industry probe, following charges against Endo International Plc and Mallinckrodt Plc.

Teva denied the allegations. Abbvie Inc, which bought Allergan in May, did not immediately respond to requests for comment.

New York said Teva, which made 20% of opioids distributed from 2006 to 2014 in the state, intentionally marketed opioids such as Actiq for off-label use, and drafted form “letters of medical necessity” for doctors to boost prescriptions and insurer reimbursements.

It said Allergan misrepresented the safety of its drugs in marketing materials, citing a 2010 U.S. Food and Drug Administration warning letter over its Kadian pain treatment. New York also accused Teva and Allergan of using “front groups” and doctors known as “key opinion leaders” to mislead people about the safety and effectiveness of opioids.