Business

Teva to pay US $519m over foreign bribery charges

Settlement relates to behaviour in Ukraine, Mexico and Russia by largest generic pharma

Teva will pay $519 million to settle charges that it paid bribes to foreign officials to win business in Russia, Ukraine and Mexico, the US justice department announced. Photograph: Menahem Kahana/AFP/Getty Images

Thu Dec 22 2016 - 19:37

Israel's Teva Pharmaceutical Industries said on Thursday it had agreed to pay $519 million to settle charges it violated the US Foreign Corrupt Practices Act.

The settlement with the department of justice and the securities and exchange commission (SEC) relates to conduct in Ukraine, Mexico and a guilty plea by a subsidiary in Russia, and followed a voluntary investigation, Teva said.

Details of the misconduct, which Teva said ended several years ago, were not disclosed.

The SEC’s complaint had alleged that Teva made more than $214 million in illicit profits by making the payments to increase its market share and obtain regulatory approvals.

READ MORE

Teva, the world’s biggest generic drugmaker, said no workers involved in the improper payments were with the company, and that it had replaced its entire leadership team in Russia in 2013.

The company, whose shares are listed on the New York and Tel Aviv stock exchanges, must also retain an independent corporate monitor for at least three years, the SEC said.

Teva said that since 2012 it had taken several steps to address issues of governance.

– (Reuters)

LATEST STORIES