Robbins Arroyo LLP: Teva Pharmaceutical Industries Ltd. (TEVA) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) in the U.S. District Court for the Central District of California. The complaint is brought on behalf of all purchasers of Teva securities between February 10, 2015 and November 3, 2016, for alleged violations of the Securities Exchange Act of 1934 by Teva’s officers and directors. Teva develops, manufactures, markets, and distributes generic medicines and a portfolio of specialty medicines worldwide.
Teva Accused of Misrepresenting Backlog
According to the complaint, throughout the class period, Teva submitted several filings with the U.S. Securities and Exchange Commission attesting to the accuracy of financial reporting, the disclosure of any material changes to the company’s internal control over financial reporting, and the disclosure of all fraud. The filings highlighted the company’s strengths, stating, “We believe that our primary competitive advantages are our ability to continually introduce new and complex generic equivalents for brand-name drug products on a timely basis, our quality, our customer service and the breadth of our product portfolio.” The filings also discussed Teva’s business strategy at length, emphasizing the company’s heightened focus on profitable and sustainable business, and that it was focusing on key growth markets and pursuing strategic business development initiatives.
The complaint alleges, however, that Teva officials failed to disclose that the company had engaged in conduct that would result in an antitrust investigation by the U.S. Department of Justice (“DOJ”) and the State of Connecticut Office of the Attorney General, and the DOJ investigation and the underlying conduct could cause U.S. prosecutors to file charges against Teva for suspected price collusion. On August 4, 2016, Teva disclosed that the company’s subsidiary, Teva USA, had received two subpoenas seeking documents and other information relating to the marketing and pricing of certain of Teva USA’s generic products and communications with competitors about such products. On November 3, 2016, Bloomberg published an article discussing the DOJ’s investigation, stating that the grand jury probe is examining whether some executives agreed with one another to raise prices. On this news, Teva American Depositary Shares fell $4.13 per share, or over 9.5%, to close at $39.20 per share on November 3, 2016.
Teva Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
Send This Post