Robbins LLP: Teva Pharmaceutical Industries Ltd. (TEVA) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) for failing to disclose and actively concealing the negative impact of the acquisition and integration of Actavis Generics on the company’s financial results and business prospects. The complaint is brought on behalf of all purchasers of Teva American Depositary Shares (“ADSs”) between November 15, 2016 and August 2, 2017. Teva develops, manufactures, markets, and distributes generic medicines and a portfolio of specialty medicines worldwide.
Teva Accused of Concealing Negative Impact of Its Acquisition
According to the complaint, Teva consummated its acquisition of Actavis Generics, which it purchased from Allergan plc for $33.4 billion in cash and approximately 100.3 million Teva shares. On that same date, defendants falsely stated to investors that the acquisition “had significant contributions to our results” and “will continue to contribute in a meaningful way to the future growth of our generics business.” On August 3, 2017, Teva revealed that the Actavis acquisition actually had a negative impact on the company’s financial and operating results for the second quarter of 2017, leading the company to lower its outlook for the remainder of the year. Teva further revealed that the company had recorded a goodwill impairment charge of $6.1 billion related to the U.S. generics reporting unit in the second quarter of 2017. On this news, Teva’s shares fell approximately 34% over two trading days to close at $20.60 per ADS on August 4, 2017.
Teva Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003 or you can complete the form below and we will contact you directly.