Teva Pharmaceutical Paying $519 Million to Settle FCPA Charges
Teva Pharmaceutical Industries Limited agreed to pay over $519 million to settle SEC and DOJ charges for violating the FCPA by paying bribes to government officials in Russia, Ukraine, and Mexico to secure regulatory approvals and market share, concealing payments as legitimate distributor expenses due to inadequate internal controls.
Teva Pharmaceutical Industries Limited agreed to pay more than $519 million to resolve parallel civil and criminal charges brought by the SEC and DOJ for violating the Foreign Corrupt Practices Act. The SEC alleged that Teva generated over $214 million in illicit profits by bribing foreign officials in Russia, Ukraine, and Mexico to obtain regulatory approvals and favorable drug prescriptions, concealing these payments as legitimate distributor expenses due to deficient internal controls. As part of the settlement, Teva must pay $236 million in disgorgement and interest to the SEC, a $283 million criminal penalty under a deferred prosecution agreement with the DOJ, and retain an independent corporate monitor for at least three years.
Teva Pharmaceutical Industries Limited agreed to pay over $519 million to settle parallel civil and criminal charges brought by the SEC and the U.S. Department of Justice for violating the Foreign Corrupt Practices Act. The SEC alleged that Teva paid bribes to government officials in Russia, Ukraine, and Mexico to secure regulatory approvals, formulary listings, and favorable prescription decisions, generating more than $214 million in illicit profits. Many of these bribes were concealed as legitimate payments to distributors, exploiting their industry relationships while bypassing proper internal accounting controls. As part of the settlement, Teva must pay $236 million in disgorgement and interest to the SEC and a $283 million criminal penalty under a deferred prosecution agreement with the DOJ. The company is also required to retain an independent corporate monitor for at least three years to ensure compliance. The investigation was led by the SEC’s Miami Regional Office with assistance from the DOJ’s Fraud Section, the FBI, and the Financial Services Commission of the British Virgin Islands. This case underscores the global enforcement focus on corporate bribery and the critical need for robust internal controls in international markets.
Exhibits & Attached Documents (1)
Extracted insights
- $519.00M $519 million $100M–$1B
- $283.00M $283 million $100M–$1B
- $236.00M $236 million $100M–$1B
- $214.00M $214 million $100M–$1B
- agency $236 million in disgorgement and interest to sec
- agency $283 million penalty in deferred prosecution agreement with doj
- person jenny trotman
- person proper internal accounting controls
- agency sec investigation
- agency Securities and Exchange Commission
- company settlement with teva pharmaceutical industries limited
- company teva pharmaceutical industries limited
- person Thierry Olivier Desmet
- Teva Pharmaceutical Industries Limited agreed to pay $519 million to settle civil and criminal charges
- Teva Pharmaceutical Industries Limited violated Foreign Corrupt Practices Act
- Teva Pharmaceutical Industries Limited made $214 million in illicit profits
- Teva Pharmaceutical Industries Limited paid bribes to foreign government officials in Russia, Ukraine, and Mexico
- Teva Pharmaceutical Industries Limited failed to devise and maintain proper internal accounting controls
- Teva Pharmaceutical Industries Limited must pay $236 million in disgorgement and interest to SEC
- Teva Pharmaceutical Industries Limited must pay $283 million penalty in deferred prosecution agreement with DOJ
- Teva Pharmaceutical Industries Limited must retain independent corporate monitor for at least three years
- SEC announced settlement with Teva Pharmaceutical Industries Limited
- Jenny Trotman conducted SEC investigation
- Thierry Olivier Desmet supervised FCPA Unit case
The Securities and Exchange Commission today announced that Teva Pharmaceutical Industries Limited has agreed to pay more than $519 million to settle parallel civil and criminal charges that it violated the Foreign Corrupt Practices Act by paying bribes to foreign government officials in Russia, Ukraine, and Mexico. The SEC’s complaint alleges that Teva made more than $214 million in illicit profits by making the influential payments to increase its market share and obtain regulatory and formulary approvals as well as favorable drug purchase and prescription decisions. “As alleged in our complaint, Teva failed to devise and maintain proper internal accounting controls to prevent the company’s payments of bribes to win business in certain regions around the globe,” said Stephanie Avakian, Deputy Director of the SEC Enforcement Division. Eric I. Bustillo, Director of the SEC’s Miami Regional Office, added, “As we allege in our complaint, many of these bribes were concealed as legitimate payments to distributors. While distributors can help companies navigate complex regulatory environments and provide valuable industry relationships, they also can create significant corruption risks for companies.” Under the settlement, Teva must pay more than $236 million in disgorgement and interest to the SEC plus a $283 million penalty in a deferred prosecution agreement with the U.S. Department of Justice. Teva must retain an independent corporate monitor for at least three years. The SEC’s investigation was conducted by Jenny Trotman with assistance from Kathleen Strandell and Russell Koonin in the Miami Regional Office. The case was supervised by Thierry Olivier Desmet of the FCPA Unit. The SEC appreciates the assistance of the Department of Justice Criminal Division’s Fraud Section, Federal Bureau of Investigation, and Financial Services Commission of the British Virgin Islands.
The Securities and Exchange Commission today announced that Teva Pharmaceutical Industries Limited has agreed to pay more than $519 million to settle parallel civil and criminal charges that it violated the Foreign Corrupt Practices Act by paying bribes to foreign government officials in Russia, Ukraine, and Mexico. The SEC’s complaint alleges that Teva made more than $214 million in illicit profits by making the influential payments to increase its market share and obtain regulatory and formulary approvals as well as favorable drug purchase and prescription decisions. “As alleged in our complaint, Teva failed to devise and maintain proper internal accounting controls to prevent the company’s payments of bribes to win business in certain regions around the globe,” said Stephanie Avakian, Deputy Director of the SEC Enforcement Division. Eric I. Bustillo, Director of the SEC’s Miami Regional Office, added, “As we allege in our complaint, many of these bribes were concealed as legitimate payments to distributors. While distributors can help companies navigate complex regulatory environments and provide valuable industry relationships, they also can create significant corruption risks for companies.” Under the settlement, Teva must pay more than $236 million in disgorgement and interest to the SEC plus a $283 million penalty in a deferred prosecution agreement with the U.S. Department of Justice. Teva must retain an independent corporate monitor for at least three years. The SEC’s investigation was conducted by Jenny Trotman with assistance from Kathleen Strandell and Russell Koonin in the Miami Regional Office. The case was supervised by Thierry Olivier Desmet of the FCPA Unit. The SEC appreciates the assistance of the Department of Justice Criminal Division’s Fraud Section, Federal Bureau of Investigation, and Financial Services Commission of the British Virgin Islands.