Former Teva officials said to return $50m over fines paid by drugmaker
Ex-managers and directors reach compromise relating to penalties levied on pharmaceutical firm in US and Israel to settle charges of bribery under their watch, Calcalist reports
Shoshanna Solomon was The Times of Israel's Startups and Business reporter
Former management officials and directors at Teva Pharmaceutical Industries Ltd. will return a sum of $50 million to the drugmaker, as part of a compromise agreement to compensate for fines and damages incurred by the company to settle bribery charges, Calcalist financial website reported on Thursday.
Teva paid fines of $519 million to the US Department of Justice and some $22 million to the State Attorney’s Office in Israel to settle investigations regarding bribes totaling tens of millions of dollars the firm gave to doctors and public workers in Russia, Ukraine and Mexico during the years 2006-2012.
The bribes were given to promote the sales of Teva’s flagship drug, Copaxone, for the treatment of multiple sclerosis.
The $50 million settlement still needs to be approved by the Tel Aviv District Court, Calcalist said, not identifying the directors and management officials involved. The decision was made following suits filed by shareholders, Calcalist said.
Following the suits, Teva set up an independent committee headed by a retired Israeli judge in 2017 to study if the drugmaker could make a case against the officials for breaches of fiduciary duties or caution.
The committee suggested that a compromise with said directors and management officials be reached, as it was difficult to prove the personal responsibility of those involved, Calcalist said.
