Why is Teva considered a controversial pharmaceutical company?
The largest generic drug manufacturer in the US was criminally indicted for price-fixing, is the lead defendant in a state cartel lawsuit covering more than 100 drugs, paid $425 million over Copaxone kickbacks, and settled opioid claims for up to $4.25 billion.
Teva's controversies are unusually severe for a generics company, a segment usually associated with lowering prices. Federal prosecutors charged Teva's US arm with three criminal counts of conspiring with competitors to fix prices, rig bids and allocate customers; it resolved them through a deferred prosecution agreement that included a $225 million criminal penalty, the largest to date for a domestic antitrust cartel.
A coalition of more than 40 states named Teva the lead defendant in a lawsuit covering more than 100 generic drugs. On the branded side, Teva paid $425 million to resolve allegations that it used charities to cover Copaxone copays while raising the drug's price. It also settled opioid claims for up to $4.25 billion. Teva has denied most civil allegations while admitting limited conduct in the criminal case.