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United States v. Teva LLC (Russia)

 
:
Teva LLC (Russia)
:
DOJ Criminal
:
December 22, 2016
:
United States v. Teva LLC (Russia)
:
United States v. Teva LLC (Russia), No. 1:16-cr-20967 (S.D. Fla. 2016).
:
Healthcare-Pharmaceutical
:
Russia
:
2006; 2007; 2008; 2009; 2010; 2011; 2012
:
An unnamed Russian government official.
:
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. Teva LLC ("Teva Russia") is Teva’s wholly-owned Russian subsidiary.

According to the DOJ, from 2006 to 2012, Teva Russia 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 Russia 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.

On December 22, 2016, the DOJ announced that Teva Russia would plead guilty to one-count of conspiracy to violate the FCPA. Teva Pharmaceutical Industries Ltd. was charged separately and pursuant to a plea agreement it entered into with the DOJ, Teva Pharmaceutical Industries Ltd. agreed to pay a criminal penalty of $283 million. In a separate enforcement action announced on the same day, the SEC reached a settlement agreement with Teva Pharmaceutical Industries Ltd. that required the company to pay $236 million in disgorgement.
:
Conspiracy - Anti-Bribery
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Plea
:
Teva Russia was not required to pay a criminal penalty in lieu of the parent company's payment of a $283 million criminal penalty.
:
Not stated.
:
0
:
Agent of Issuer
:
Foreign
:
Israel
:
Not stated.
:
Cash
:
Not stated.
:
Russia
:
No
:
No