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The suit alleges that the employees’ actions earned the company $18.6 million and that, although Teva dismissed 11 employees following an internal investigation of corrupt practices, it did not put a stop to illegal activity by its employees and did not enforce its anti-corruption policies.
According to the complaint, a Teva employee who oversaw its operations in Mexico wrote a memo acknowledging that the company could not rule out that payments were made in violation of the U.S. Foreign Corrupt Practices Act. Teva also improperly categorized payments to senior Mexican officials as legitimate business expenses and included the payments in financial statements submitted to the U.S. Securities and Exchange Commission, the complaint states.