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Investing.com — Teva Pharma Industries Ltd ADR (NYSE:TEVA)dropped 8% after a report that the U.S. government is suing the Israeli company.
The Department of Justice accused Teva of causing the submissions of hundreds of millions of dollars of false claims to Medicare as a result of kickbacks it paid for its multiple sclerosis drug Copaxone, Reuters reported.
In a complaint filed with the U.S. District Court in Boston, Teva is accused of paying two third-party foundations more than $300 million to cover Medicare co-payment obligations of Copaxone patients. Teva’s conduct violated the federal False Claims Act, Reuters reported.
Teva’s earnings per share of 55 cents beat the estimated 53 cents when reported earlier this month. Sales of $3.87 billion came in under the expected $3.93 billion.
The stock has one buy rating, seven holds and one sell, with an average price target of $12.
