Based on a bit of googling and searching Haaretz, it seems like the litigation must be ongoing in Israeli district court. The latest news story I found was from 10/12/2010 and is that TEVA's attempt to stay the litigation and force the dispute to be arbitrated was denied by the Israeli Supreme Court on the grounds there was a public interrest in havceing the case litigated in an Israeli court as opposed to behind closed doors overseas. A second attempt to stay the proceeding resulted in an award of counsel fees against TEVA.