The U.S. Justice Department is planning to charge Teva Pharmaceuticals with conspiring with competitors to raise generic drug prices says a source from a Bloomberg report. This move comes after Teva rejected a settlement that would have required paying a criminal penalty and admitting wrongdoing.
The charges against Teva comes out of the Justice Department’s investigation into allegations that companies conspired with one another to prop up the prices of certain widely used medications. Five other companies have settled charges and agreed to pay a total of $426 million in criminal penalties.
The Justice Department’s antitrust division, which is conducting the investigation, has allegedly offered Teva a settlement known as a deferred prosecution agreement. Such resolutions suspend charges but require a company to admit wrongdoing and cooperate in the investigation. Teva allegedly told the government it would only accept a non-prosecution agreement that doesn’t require the drugmaker to admit wrongdoing.
Read the Bloomberg report