Teva Pharmaceutical Industries Limited American Depositary Shares (NYSE: TEVA)
According to the Complaint, Teva Pharmaceutical Industries Limited purports to develop, manufacture, market, and distribute generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, and internationally.
Among Teva’s products is Copaxone (glatiramer acetate), a prescription drug that is used to treat relapsing forms of multiple sclerosis. Throughout the Class Period, Teva consistently described Copaxone as the Company’s “leading specialty medicine,” reporting Copaxone sales and revenues that consistently dwarfed the same metrics for other Teva specialty products.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational, and compliance policies. Specifically, the Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (i) Teva had made substantial illegal kickback payments to charitable foundations to cover Medicare co-payment obligations of patients taking Copaxone; (ii) accordingly, Teva’s revenues derived from Copaxone were in part the product of unlawful conduct and thus unsustainable; (iii) the foregoing misconduct subjected Teva to a foreseeable risk of heightened regulatory scrutiny and enforcement, as well as reputational harm when the truth became known; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.