(Teva), accusing the company of using kickbacks to stimulate sales of Copaxone, a drug used to treat multiple sclerosis, leading to false claims filed with Medicare. < p > < p > in a lawsuit filed in federal court in Boston, the Department of justice claimed that Teva donated more than $300 million to two alleged independent charitable foundations to pay for the self payment of medical insurance for patients using Copaxone to promote the sale of products, thus defrauding Medicare and other government medical programs. < / P > < p > through the use of the foundation, Teva helped patients avoid the triple price hike of Copaxone, which generated hundreds of millions of dollars of false claims for Teva and generated an equal amount of revenue for the company. From 2007 to 2015, Teva increased the price of Copaxone from $170000 a year to more than $730000, according to the government. Copaxone is one of Teva’s most profitable products. According to Reuters, the drug generated $435 million in North America in the first six months of this year. < p > < p > the federal government said: “because of illegal kickbacks, Teva is not subject to market pricing. It allows U.S. taxpayers to bear the high price tava set for Copaxone, and the company profits from it.” The government demanded three times compensation for its violation of the federal False Claims Act. < p > < p > after 2003, Congress expanded Medicare for low-income groups to prescription drugs. Then there was a huge increase in patient aid charities. Under the rules, pharmaceutical companies can donate money to patients with private insurance, but not to funds with government funded drug programs, which may lead patients to choose more expensive drugs. Shares in Teva fell 9.5% on Tuesday. In a report to clients on Tuesday, Elliot Wilbur, an analyst with Raymond James, said the market reaction “seems serious and almost contains the possibility of a worse situation.”. Mr Wilbur said the market value of Teva had shrunk by $1.6bn, after Wilbur had rated Teva as “outperforming”. Kelley Dougherty, a spokesman for Teva, said Teva would defend itself against the government’s charges. In his view, the lawsuit “only seeks to further limit access to essential medicines and health care, while Teva’s project aims to help patients who need important treatment programs to obtain drugs prescribed by their medical students through appropriate charitable contributions to independent charitable foundations.”. < / P > < p > according to the 13f-hr form submitted by Berkshire on August 14, Berkshire currently holds 42.8 million shares of Teva, with capital injection accounting for 3.9% of Teva’s total shares. By the end of the first quarter of 2020, Teva’s shares were worth $364 million, but since then Teva’s share price has risen, bringing it to $480 million. But in the first quarter of this year, Berkshire sold 460, 000 shares of Teva, the first time Berkshire has sold its shares since it opened its position. < / P > < p > Berkshire Hathaway’s purchase of Teva’s shares was not a personal decision of Mr. Buffett. So, while it’s a stock owned by Mr. Buffett, it’s not picked by the God himself. Over the past three years, Teva has been very unstable, facing bribery charges, resolving Copaxone’s patent protection, and experiencing changes in senior executives, adding to the latest federal litigation. Teva’s share price has fallen sharply to its lowest level in 20 years. < / P > < p > looking at the past experience, the performance of Buffett’s investment in medical shares has not been very good. Berkshire Hathaway currently owns only three healthcare stocks, with the exception of Biogen, which joined earlier this year. Although DAVITA and Johnson & Johnson outperformed Teva, they still underperformed the S & P 500 in the past three and five years.