US Justice Department announced Thursday that Israeli Teva Pharmaceutical Industries will pay $519 million fine to settle charges concerning violations of the Foreign Corrupt Practices Act (FCPA). Teva admits that it paid bribes to foreign officials to win business in Russia, Ukraine and Mexico.
In Russia, Teva paid bribes to a “high-ranking Russian government” official who used his authority to boost sales of the Teva multiple sclerosis drug Copaxone, resulting in more than $200 million in profits for Teva and about $65 million for the Russian official between 2010 and 2012, the Justice Department said.
In Ukraine, Teva admitted to paying bribes in two cases in 2001 and 2011 to a senior government official, who agreed to promote Teva drugs.
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In Mexico, Teva’s subsidiary paid bribes to doctors employed by the Mexican government since at leat 2005, according to the Justice Department.
Teva will pay a criminal penalty of $283 million to the Department of Justice. It also agreed to pay $236 million in disgorgement to the Securities and Exchange Commission in a parallel case.
