Teva Reveals Findings of Likely FCPA Violations

Israeli drugmaker Teva says it has uncovered questionable business practices at its operations in Russia, Eastern Europe, Latin America and elsewhere, in violation of the Foreign Corrupt Practices Act, the U.S. antibribery law.

Teva’s ongoing, internal investigation traces back to an SEC probe into the firm’s practices in Latin America, according to an annual SEC filing last week.

After receiving subpoenas and information requests from the SEC and Department of Justice about potential bribery, Teva launched its investigation in 2012 with help from outside counsel, turning over the findings to U.S. authorities. The investigation also revealed that Teva affiliates under investigation by local authorities in some countries turned over inaccurate or altered information regarding marketing and promotional practices, the company said.

There’s no way of knowing what impact the violations may have, Teva warned investors, noting that U.S. authorities can hit the company with fines, as well as criminal penalties. Operations in the affected countries could also be impacted, Teva said.

The internal investigation is expected to last at least through the end of 2015, Teva said. — Bryan Koenig