Teva Pharmaceutical Industries ($TEVA) Investor Settlement
Teva Pharmaceutical has reached a tentative settlement to resolve investor claims that it concealed an illegal kickback scheme used to inflate Copaxone sales.
Outline:
Teva touted Copaxone as its leading specialty medicine, attributing the drug's soaring sales and steep price increases to strong underlying demand, patient loyalty, and its Shared Solutions support program. Investors say Teva was actually using charitable foundations as illegal pass-through conduits to cover Medicare patients' co-pays for the drug. On August 18, 2020, the U.S. Department of Justice filed a complaint alleging Teva made $328.6 million in kickback payments between 2006 and 2015, and $TEVA fell roughly 15%. The case has now moved to a tentative settlement.
Timeline:
October 29, 2015: Teva reported record Copaxone sales, attributing the drug's success to its Shared Solutions program and strong market demand.
August 3, 2017: Teva disclosed it had received a subpoena from the U.S. Attorney's office regarding its donations to patient assistance programs; $TEVA fell approximately 41% over the following three trading days.
November 2, 2017: Teva cut its 2017 financial guidance, citing declining Copaxone revenue, and $TEVA fell approximately 20%.
August 18, 2020: The DOJ filed a False Claims Act complaint alleging Teva paid $328.6 million in kickbacks to charitable foundations between 2006 and 2015 to cover Copaxone patients' Medicare co-pays; $TEVA fell approximately 15%.
Background:
Teva Pharmaceutical Industries, an Israeli pharmaceutical company, marketed Copaxone, its multiple sclerosis treatment, as its leading specialty medicine. Teva's securities trade on the NYSE and Tel Aviv Stock Exchange under the ticker $TEVA.
Teva told investors that Copaxone's soaring sales and price increases, which rose more than 19 times the rate of inflation between 2006 and 2015, reflected strong underlying demand, brand loyalty among patients and physicians, and the value of its Shared Solutions patient support program.
Investors say the real driver of Copaxone's success was different. According to the case, Teva used specialty pharmacy Advanced Care Scripts and charitable foundations Chronic Disease Fund and The Assistance Fund as unlawful pass-through conduits, funding Medicare patients' co-pays for Copaxone in violation of federal anti-kickback laws — which kept patients on the drug despite its steep price increases.
The scheme came to light in stages. On August 3, 2017, Teva disclosed it had received a subpoena from the U.S. Attorney's office in Boston seeking information about its donations to patient assistance programs.
On November 2, 2017, Teva cut its financial guidance, citing weakening Copaxone sales. On August 18, 2020, the DOJ filed a formal complaint alleging Teva made $328.6 million in kickback payments from 2006 through 2015.
Following the August 2020 disclosure, $TEVA fell approximately 15%. The case has now moved to a tentative settlement.
What Can Investors Expect Now?
Teva Pharmaceutical has reached a tentative settlement to resolve investor claims that it concealed an illegal kickback scheme used to inflate Copaxone sales.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Frequently Asked Questions
All persons or entities who purchased or otherwise acquired Teva Pharmaceutical Industries ($TEVA) American Depositary Receipts (ADRs) between October 29, 2015 and August 18, 2020 (the Class Period) and were damaged when the alleged corrective disclosures came out.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.