Teva Pharmaceutical Industries (TASE: TEVA; NYSE: TEVA) continues to “clear the desk” of legal proceedings in which it is involved. A few weeks ago, a settlement was approved of a derivative action brought against the company over its conduct in the acquisition of Mexican company Rimsa in 2015. Now, Teva has also settled a class action filed against it by investors in the US over the price fixing affair in which the company was allegedly involved.
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Teva will pay $420 million, without admitting wrongdoing, and it denies the claims.
The shareholders sued Teva in 2016 following an investigation by the US authorities into alleged price fixing in the generic drugs industry. In August 2020, the US Department of Justice charged Teva with price fixing offences that allegedly caused US consumers to pay $350 million extra for generic drugs. Other generics companies, including Israeli company Taro, reached settlements in the affair, but Teva did not.
Teva said in a statement, “We continue to settle complex legal cases in order to be able to focus on our mission of providing access to life-saving drugs at affordable prices all over the world. Teva’s insurers will bear most of the amount of the settlement, alongside a small sum to be paid by Teva. In addition, Teva does not admit any responsibility and denies the claims. Settlement of the matter reflects the general interest of Teva, and of the patients who continue to rely on us daily for the largest generic drugs portfolio in the world.”
Teva is also exposed to legal proceedings over allegations in connection with the marketing of addictive opioid-based painkillers. These proceedings have been weighing on the company’s share price for a long time. Although agreement in principle was reached on a settlement to end the proceedings more than two years ago, it has not so far been signed.
Teva, headed by CEO Kare Schultz, has a market cap of $10 billion.
Published by Globes, Israel business news – en.globes.co.il – on January 19, 2022.
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