Bengaluru: Israel’s Teva Pharmaceutical Industries Ltd, said on Thursday it had agreed to pay $519 million to resolve charges related to the US Foreign Corrupt Practices Act.
The settlement with the department of justice and the Securities and Exchange Commission 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. Teva, the world’s biggest generic drugmaker, said no workers involved in the improper payments were still with the company.
Teva replaced its entire leadership team in Russia in 2013. The improper conduct did not involve US sales, Teva said.
ALSO READ: Sun Pharma to acquire Novartis’s cancer drug Odomzo for $175 mn
The Act makes it a crime to bribe foreign government officials to win business regardless of whether the payments are made directly or through other means such as extravagant entertainment or footing the bill for international travel.
The deal includes a deferred prosecution agreement and a temporary independent compliance monitor for Teva, whose shares are listed on the New York and Tel Aviv stock exchanges. Teva said that since 2012 it had taken several steps to address issues of governance, including naming a global head of compliance and ending problematic business relationships.
Reuters reported earlier this month that Teva was investigating claims by an anonymous tipster that the company bribed state healthcare workers in Romania. Teva’s shares were up 2.2% at $37.16 in morning trading in New York. Reuters