Teva Pharmaceuticals (NYSE:TEVA) employee Robert Huellemeier launched a proposed class action suit against the generic drugmaker this week, alleging that the company hid that it was under investigation for price fixing and bribery.
Huellemeier, who bought TEVA shares through a company program, accused the company of leaving out any mention of multiple investigations in regulatory notes with the SEC.
Specifically, the employee’s complaint references an antitrust investigation by the Dept. of Justice and an antitrust probe by Connecticut’s Attorney General for alleged price fixing, a DOJ investigation into violations of the Foreign Corrupt Practices Act, DOJ and AG criminal investigations into Teva for price collusion and a DOJ FCPA probe relating to bribery of Russian government officials.
Huellemeier said that because Teva did not have appropriate control over its financial reporting, all of its public statements at the time were “materially false and misleading.”
The case was filed in the Southern District Court of Ohio with Judge Susan Dlott.
Also this week, antitrust regulators in the European Union accused the company of arranging an illegal deal with Cephalon to delay the sale of a cheap generic version to Cephalon’s sleep disorder drug, modafinil.