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updated: 3/12/2014 8:05 AM

Pharmaceutical, subsidiary to pay $30 million

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Associated Press

Prosecutors say a pharmaceutical manufacturer and its subsidiary will pay nearly $30 million to U.S. and Illinois authorities. The payment is to resolve claims it improperly paid a Chicago physician to prescribe anti-psychotic medication.

Chicago's U.S. attorney's office announced the agreement with Teva Pharmaceuticals USA, Inc. and subsidiary IVAX LLC Tuesday.

Dr. Michael J. Reinstein allegedly prescribed generic clozapine to thousands of Medicare and Medicaid patients for payments. Prosecutors say clozapine is a drug of last resort because of potentially deadly side effects.

Teva says it didn't admit liability and "was pleased to bring resolution to" the case.

The civil case against Reinstein continues. In a 2012 lawsuit, federal prosecutors say he sought $50,000 yearly payments to put patients on clozapine. He didn't return a message seeking comment.

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