By Teva Pharmaceuticals, a U.S. affiliate of Teva Pharmaceutical Industries Ltd., has announced that it has reached an agreement with the U.S. Department of Justice to settle criminal price-fixing charges brought against the company in 2020.
Terms of the Agreement
Under the terms of the deferred prosecution agreement, Teva will make a payment of $225 million over a period of five years. Additionally, the company will donate $50 million worth of two generic products to humanitarian organizations. Furthermore, Teva will divest an additional generic product to a third-party buyer.
Admission of Wrongdoing
In acknowledging its involvement, Teva admits that a former employee, in three cases between 2013 and 2015, colluded with competitors to prevent Teva from bidding on supplying a particular generic product to three separate customers. It is important to note that the former employee in question left the company in 2016.
Commitment to Compliance
Teva asserts that it has implemented robust and consistent compliance controls to prevent any recurrence of such activities. The company reassures its stakeholders that it takes these matters seriously and is dedicated to maintaining ethical standards.
Financial Performance
Following the announcement, Teva’s American depositary receipts experienced a 0.5% gain on Monday. So far this year, Teva’s stock has seen a positive growth of 5.4%. In comparison, the S&P 500 has achieved a growth of 14.6%.
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