The institutional investors also sue Teva: “Hide Teva’s real growth engine – the strategy of raising prices”
Not only the price adjustment issue in the US: Teva is also exposed to class actions. Phoenix, Harel, Migdal and other institutions filed a series of claims against the company: “Teva’s plot to raise prices was very profitable and contributed nearly $ 1.35 billion to Teva’s bottom line”
In addition to the US authorities’ claim, Teva is also exposed to class actions in the US by Israeli institutional investors. One of the institutional investors told “Globes” today, “This is not a new lawsuit. The purpose of the separate framework is to allow Israeli shareholders to sue for damages, and there are many Israeli institutional partners in this claim. “
One claim was filed by Migdal, Yozma, the Hebrew University’s pension fund, Altshuler Shaham and Helman Aldubi. In this claim, the defendants are Teva and the former senior executives of the company – Erez Vigodman, Eyal Desheh, Alan Oberman, Sigurdur Olfson, Yitzhak Peterburg and others; As well as current CEO Carr Schultz and CFO Michael McClellan.
The claim alleges false representations and omissions by Teva in the period between February 2014 and December 2018, which led to the plaintiffs purchasing Teva’s share in the market at artificially inflated prices. According to them, in December 2018 the market learned that Teva had participated in one of the largest cartels in US history, causing billions of dollars in damage to investors and asking the court to determine Teva pay compensation. According to the plaintiffs, the defendants “hid Teva’s real growth engine – the illegal price hike strategy – for example, on February 11, 2016, the company reported that its generic business profits increased by $ 500 million compared with the previous year. CEO of the generic division) explicitly rejected the idea that the astonishing growth in profit is attributed to a price strategy: ‘How did we do this? Not through pricing, but with the portfolio mix, new