Teva corruption settlement doesn't cover co officers

Chaim Hurvitz

The investigation into the responsibility of Teva managers for bribes paid by subsidiaries in Russia and Ukraine continues.

The State Attorney's Office made clear today that the NIS 75 million conditional settlement reached with Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) of the affair of corrupt payments in Russia and Ukraine applies to the company only, and not to individual officers. This means that although the company has avoided criminal sanctions, the investigation of senior Teva managers at the time of the affair and into the question of their degree of responsibility is not over.

Among those being investigated is Chaim Hurvitz, son of legendary Teva CEO Eli Hurvitz, who was a senior manager at Teva, and a director of the company from October 2010 to June 2014.

Since, however, the bribes in the affair were paid by subsidiaries of Teva, it can be assumed that company officers in Israel, including Hurvitz, will not face criminal charges, and that they too will shortly sign settlements that exempt them from criminal proceedings, and in which they will take some responsibility for failure to exercise adequate supervision of the subsidiary companies. Talks on such a settlement are underway.

Published by Globes [online], Israel business news - www.globes-online.com - on January 15, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Chaim Hurvitz
Chaim Hurvitz
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