An unnamed Russian government official; An unnamed Ukrainian government official; Doctors employed by Mexican state-owned health facilities.
Teva Pharmaceutical Industries Ltd., headquartered in Petah Tikva, Israel, is a pharmaceutical and drug manufacturing company. From 1987 to 2012, Teva maintained American Depository Receipts on the Nasdaq National Market and in 2012, moved its ADRs to the New York Stock Exchange.
According to the DOJ, Teva and several of its subsidiaries facilitated schemes in Russia, Ukraine, and Mexico to obtain or retain business by making improper payments to government officials and employees of state-owned enterprises.
In Russia, from 2006 to 2012, Teva allegedly agreed to make corrupt payments to a “Russian Official,” “intending that the Russian Official would use his position and ability to influence the Russian government to purchase [Teva’s products] through tender offers.” To do so, Teva’s Russian subsidiary partnered with a local Russian distributor (“Russian Distributor”) that was effectively owned and controlled by the Russian Official. The Russian Official allegedly ensured that Teva’s drugs received beneficial treatment within the Russian market and, in exchange, the Russian Official received improper payments through the high profit margins the Russian Distributor earned as Teva’s repackager and distributor in Russia.
In Ukraine, between 2001 and 2011, Teva allegedly made improper payments to a government official (“Ukrainian Official”) to secure business advantages for its products. Specifically, Teva allegedly provided the Ukrainian Official with $200,000 and five paid vacations to obtain his influence in supporting the clinical approval and advantages.
In Mexico, between 2007 and 2012, the DOJ asserts that Teva’s Mexican subsidiary used a third-party distributor to make payments to physicians and other healthcare providers employed at government-owned facilities in exchange for promoting Teva’s products. According to the DOJ, despite becoming aware of the alleged improper payments, Teva failed to implement a system of adequate compliance protocols to prevent the payments from continuing in the future.
On December 22, 2016, the DOJ announced that it had signed a deferred prosecution with Teva to resolve the FCPA charges against it. As part of the agreement, Teva agreed to pay a criminal penalty of over $283 million. The DOJ also announced that Teva's Russian subsidiary, Teva Russia, would plead guilty to a one-count criminal information. In a separate enforcement action announced on the same day, the SEC reached a settlement agreement with Teva that required Teva to pay $236 million in disgorgement.
Teva agreed to pay a criminal penalty of $283 million.