December 18, 2020...3:07 am

Teva Deferred Prosecution Agreement

Teva entered into a deferred law enforcement agreement (DPA) as part of a criminal investigation filed today in the Southern District of Florida, accusing the company of one count of conspiracy to violate the anti-corruption provisions of the FCPA and one count of failing to enforce proper internal controls. According to its agreement with the department, Teva will pay a total fine of $283,177,348. Teva also agreed to continue to cooperate with the department`s investigation, improve its compliance program, conduct strict internal controls and maintain an independent corporate compliance monitor for three years. Teva Russia signed a plea agreement in which he agreed to plead guilty to a one-neck criminal information that was also filed today in the Southern District of Florida and accuses the company of conspiracy for violating FCPA`s anti-corruption rules. The appeal agreement is subject to court approval. The case was assigned to U.S. District Judge Kathleen M. Williams of the Southern District of Florida, and Russia`s first court appearance is scheduled for January 12, 2017. In July, Taro Pharma became the youngest company to join these ranks and secure a $419 million deal to postpone the prosecution and call the state a witness in the investigation. Count Two accuses Teva, Taro (and his former executive Ara Aprahamian) and others of agreeing to increase the price of generic drugs for the treatment of arthritis, seizures, pain, diseases and blood clots. In February 2020, Aprahamian was indicted for his role in the conspiracy with Teva to raise the price of antibiotics and diabetes treatments. Taro acknowledged his behavior, reached an agreement on the adjourned prosecutions and agreed to pay a $205.7 million fine and cooperate with ongoing government investigations.

The third and final count accuses Teva, Sandoz and others of conspiring to raise the price of generic drugs for the treatment of brain tumour, cystic fibrosis, arthritis and hypertension. In March 2020, Sandoz acknowledged his role in the conspiracy, reached an agreement on the lawsuits and agreed to pay $195 million in penalties.