Under the settlement, Teva's insurance company, which as far as is known is not Israeli, will pay the pharmaceutical company $40 million to fully close all potential claims. The opioid affair in which Israeli drugmaker Teva Pharmaceutical Industries Ltd. (NYSE: TEVA ; TASE: TEVA ) has been embroiled has now been settled in Israel.
The economic court in Tel Aviv has approved suits filed against Teva Israel on the matter and among other rulings has decided that insurance companies will pay Teva $40 million - the highest amount ever achieved in a derivatives case in Israel. This follows settlements in the US last year with all 50 states in the US in which Teva will pay $4.3 billion to end the opioid lawsuits against it without admitting any wrongdoing.
At the heart of the matter were allegations that pharmaceutical companies in the US, headed by Purdue pharma, controlled by the Sackler family, had aggressively marketed narcotic painkilling drugs, while concealing that they contained addictive and dangerous ingredients. An estimated hundreds of thousands of victims died of drug overdoses in the affair, which was declared a national emergency in the US. Two procedures since 2019 Israel was also affected by the drug scandal.
In 2019 two cases were opened in the Tel Aviv economic court ahead of a derivatives suit claiming that senior executives at Teva worked, "To massively promote opioid use, while deviating from the prescribed medical indication for these drugs," and that the comp.
