Israel’s Teva Pharmaceutical said in a securities filing Tuesday it has reserved $520 million for an FCPA settlement.
Teva said it is now in “advanced discussions” with the DOJ and SEC.
“The provision relates to conduct in Russia, Mexico and Ukraine during the time period covering 2007-2013,” Teva said.
The SEC subpoenaed Teva, one of Israel’s biggest companies, in 2012 because of potential FCPA problems in Latin America. The probe then spread to Russia and other countries.
In 2014, Teva said affiliates under investigation “provided to local authorities inaccurate or altered information relating to marketing or promotional practices.”
The sales practices “could rise to the level of FCPA violations and/or violations of local law,” Teva said.
A settlement of $520 million would land Teva fourth on our list of the ten biggest FCPA cases.
Teva would also be the first Israeli company to appear in the top ten.
Teva Pharmaceutical Industries Limited trades on the NYSE under the symbol TEVA.
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Here’s the FCPA disclosure from Teva Pharmaceutical Industries Limited’s Form 6-K filed with the SEC on November 15, 2016:
For several years, Teva has conducted a voluntary worldwide investigation into business practices that may have implications under the U.S. Foreign Corrupt Practices Act (“FCPA”), following the receipt, beginning in 2012, of subpoenas and informal document requests from the SEC and the DOJ with respect to compliance with the FCPA in certain countries. Management has established a provision of approximately $520 million based on advanced discussions with the DOJ and SEC to settle these FCPA matters. The provision relates to conduct in Russia, Mexico and Ukraine during the time period covering 2007-2013. Any final settlement would be subject to court, DOJ and SEC Commission approval.
Richard L. Cassin is the publisher and editor of the FCPA Blog.