Teva Pharmaceuticals (NYSE:TEVA) will pay $519 million to settle allegations that the company bribed overseas officials in Mexico, Russia and Ukraine to promote its products, according to the U.S. Justice Dept. The department reported that the millions of dollars in bribes occurred for more than a decade.
The pharmaceutical giant agreed to $238 million to settle Foreign Corrupt Practices Act allegations, as well as $236 million in profits plus interest to resolve the Securities and Exchange Commission’s civil investigation.
Teva admitted that it bribed Russian officials and raked in $65 million in inflated, “corrupt” profits, according to Reuters. The company also said that it bribed a Ukrainian government official to gain entrance into the country’s markets.
None of the executives and employees involved in the bribery payments work at Teva anymore, the company said, and it has taken steps since 2012 including naming a global head of compliance.
The company’s improper conduct did not involve any U.S. sales, Reuters reported. The SEC said that Teva must have an independent corporate monitor for at least 3 years.
“As alleged in our complaint, Teva failed to devise and maintain proper internal accounting controls to prevent the company’s payments of bribes to win business in certain regions around the globe,” SEC Enforcement Division deputy director Stephanie Avakian said in prepared remarks.
