FDAnews Drug Daily Bulletin

Teva Sued by Hedge Funds for Delaying Disclosure of DOJ Price-Fixing Subpoena

Aug. 10, 2017

Hedge fund investors are suing generics manufacturer Teva for not being forthcoming about a federal price-fixing investigation — saying the company’s false statements before the eventual reveal of a subpoena resulted in losses of billions in shareholder value.

The suit, filed in Connecticut federal court by several funds overseen by Oz Management, alleges that between February 2014 and November 2016, the value of securities and shares of Teva stock were artificially inflated by the company’s statements — specifically in describing the company as a global leader in generics, and that its products were subject to intense competition and priced accordingly.

Instead, Oz claimed the company’s revenue was boosted by large price hikes in certain medicines, pointing to an 8,281 percent increase in the cost of the antibiotic doxycycline over a six-month period.

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