products and streamlining. ” In reality, the price-growth strategy contributed $ 155 million, or 31 percent of growth, and generated $ 848 million of inflated profits in 2015. “
At the same time, Harel filed a suit against Teva and former executives (not including Vigodman and Grass) and against McClellan for damages caused to the shareholders who purchased Teva shares between May 1, 2014 and February 8, 2018. In this claim, Teva’s plot to raise prices ” Highly profitable and contributed nearly $ 1.35 billion to Teva’s bottom line. ” They note a number of drugs in which “prices moved in almost perfect coordination and arose immediately and simultaneously in every company.”
Teva said it suffered a number of difficulties before the period in question, and in 2013 the CEO of Jeremy Levin said in August that US generic growth was slowing. According to the lawsuit, the coordinated price increase led to a “rebound” in Teva and to a 6% growth in generic sales in the US in the third quarter of 2013. “The sales and profits figures Teva reported during the relevant period were incorrect and misleading, Teva breached the securities laws and charged them with compensation.
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Another claim, filed earlier, was filed by The Phoenix against the company, Vigodman, Deshe, McClellan and others. The claim includes those who purchased Teva shares between October 30, 2013 and February 8, 2018, and Phoenix claims that these purchases were made at “artificially inflated prices”, leading to damages for breach of securities laws executed by the Company. Among other things, Teva claims that it has omitted material details, and that “inflating Teva’s sales through price adjustment was a violation of US antitrust laws and exposed the company to significant risk.”
“The company will respond in the legal channels.”