On Tuesday, Teva Pharmaceutical Industries (NYSE: TEVA) was one of the few large-cap stocks to rise in price on a terrible day for the stock market. Teva shares closed nearly 4% higher on some positive legal news for the company.
Teva announced that its U.S. affiliate, the similarly named Teva Pharmaceuticals, has agreed to a legal settlement with the state of Louisiana to settle opioid-related claims.
These concern Teva’s production of such medicines; the state claims that Teva and other opioid makers “engaged in fraudulent marketing regarding the risks and benefits of prescription opioids, which helped fuel Louisiana’s opioid epidemic.”
Louisiana’s suit is one of a host of such legal actions brought by states and other jurisdictions alleging that pharmaceutical companies like Teva contributed to the worsening problem of opioid addiction. Teva has reached settlements with a clutch of those states, but still faces numerous pending lawsuits.
The Louisiana settlement will see Teva pay $15 million over the course of 18 years to the state. Additionally, it is to donate medicines that it says will “aid in opioid addiction at recovery,” contributions it values at $3 million in terms of wholesale acquisition cost.
Teva said the finalization of the settlement is contingent on confirmation from Louisiana by Nov. 2 that all state political subdivisions will essentially accept the arrangement.
Meanwhile, Teva wrote that it “continues to negotiate a national settlement and remains open in parallel to pursuing opportunities with individual states such as the deal announced today, as long as it is consistent with the nationwide approach.”
In other instances where that is not a likely possibility — California and New York were specifically mentioned — the company will continue to defend its actions and conduct.
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