Teva Pharmaceuticals, a U.S. affiliate of Teva Pharmaceutical Industries Ltd., has reached a deferred prosecution agreement with the U.S. Department of Justice to settle the criminal price-fixing charges brought against Teva in 2020. Under the DPA, which will allow Teva to avoid mandatory exclusion from participation in U.S. federal health care programs, Teva will pay a fine of $225M over five years, with $22.5M due each year from 2024 through 2027, and $135M due in 2028. The company has also agreed to donate $50M worth of two generic products (valued at wholesale acquisition cost), to humanitarian organizations, and to divest one additional generic product to a third-party buyer. Teva admits in the DPA that a single former employee, in three instances involving three separate customers between 2013 and 2015, agreed with competitors that Teva would not bid on an opportunity to supply that customer with a particular generic product. This former employee left the Company in 2016.
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