Teva Pharmaceuticals, a U.S. affiliate of Teva Pharmaceutical Industries Ltd.
TEVA,
said Monday 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. Under the deferred prosecution agreement, Teva will pay a fine of $225 million over five years, donate $50 million worth of two generic products to humanitarian organizations, and divest an additional generic product to a third-party buyer, the company said in a release. As part of the agreement, Teva admits that a single former employee, in three cases involving three separate customers between 2013 and 2015, agreed with competitors that Teva would not bid on an opportunity to supply the customer with a particular generic product, the company said, noting that the former employee left the company in 2016. “Teva has robust and consistent compliance controls in place designed to prevent this type of activity from reoccurring,” the company said. Teva’s American depositary receipts gained 0.5% Monday and is up 5.4% in the year to date, while the S&P 500
SPX,
has gained 14.6%.
