Teva Pharmaceuticals news concerning allegations about price fixing are hitting TEVA stock hard on Monday.
The news about Teva Pharmaceuticals (NYSE:TEVA) comes from a lawsuit that spans 44 states. This lawsuit claims that the company, as well as several others in the pharmaceuticals industry, conspired to inflate prices on generic drugs.
While the allegations made in this Teva Pharmaceuticals news point to it being the leader of the price fixing, it notes that the behavior takes place across the industry. TEVA is denying the claims that it took part in any such scheme.
According to the lawsuit, Teva Pharmaceuticals leaders met with other drug company heads at events to speak about the price fixing plan. The lawsuit claims that this includes formal dinners, golfing events and others. The leaders allegedly careful to never communicate the price fixing plan in written form, reports The New York Times.
The Teva Pharmaceuticals news also includes a large amount of other drug companies caught up in the allegations. In total there are 20 that are named in the lawsuit. This lawsuit also includes several executives at these companies as defendants.
The lawsuit isn’t just going after Teva Pharmaceuticals and other drug companies for alleged price fixing. It also accuses the companies of working to obstruct justice. This includes trying to keep investigators from learning more about the possible price fixing plan, NorthJersey.com notes.
TEVA stock was down 15% as of noon Monday.
As of this writing, William White did not hold a position in any of the aforementioned securities.