Teva Accused of Misleading Investors About Acquisition’s Success

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Teva Pharmaceutical Industries Ltd. and three executives have been named as defendants in a proposed class action lawsuit that accuses them of violating federal securities laws by publishing false statements regarding their financial projections. According to the complaint, the defendants assured investors that a recent acquisition of Actavis was “progressing according to plan” and would boost their U.S. generics business.

Almost a year later, the suit argues, the defendants admitted that the acquisition had negatively impacted their financial results, causing stock prices to drop from $31.25 per share to $20.60 per share on August 4, 2017.