Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) has reached a settlement with the US authorities in which it will pay a $519 million fine. The settlement concludes negotiations between the company and the US administration concerning violations of the Foreign Corrupt Practices Act (FCPA). Teva admits in the agreement that it took part in unacceptable practices aimed at promoting its products in various countries, including Russia, Ukraine, and Mexico. Teva today stated, "The resolution involves conduct occurring in the past, and none of the employees involved in the improper payments are still employed by Teva, including in Russia, where the entire leadership team was replaced in 2013. None of the conduct in question involved Teva's US sales."
Teva CEO Erez Vigodman added, "While the conduct that resulted in this investigation ended several years ago, it is both regrettable and unacceptable, and we are pleased to finally put this matter behind us. Since becoming CEO, I have worked diligently to make our culture of compliance central to everything Teva does. The compliance program that Teva has in place is serious, rigorous, and comprehensive and is designed to protect the company and its subsidiaries against future violations."
In its press release, Teva stated that as soon as the company learned of the suspected FCPA violations in 2012, it began its own independent investigation extending to the company's entire global activity. "The Teva of today is a fundamentally different company," stated Vigodman. "We welcome working with the monitor as an added step in our process to ensure the program we have put in place is working as designed. Teva has a compliance culture that begins with a strong tone at the top, including our executive regional and local management and a culture of compliance that underpins every single business decision that Teva makes."
Published by Globes [online], Israel business news - www.globes-online.com - on December 22, 2016
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