New York Attorney General Seeks to Bring Teva Back Into Opioid Case -- Update

By Dean Seal

New York Attorney General Letitia James has asked a judge to bring Teva Pharmaceutical Industries Ltd. back into litigation related to the national opioid epidemic, saying Monday that her office has uncovered evidence that the company downplayed its involvement with its U.S. subsidiary.

Ms. James said that a state court should vacate its previous dismissal of Teva from a lawsuit that has already led to one jury verdict against Teva Pharmaceuticals USA Inc., which was found liable in December for creating a public nuisance in the state and two Long Island counties.

On Monday, Ms. James said that her office has found new evidence showing the Teva parent company was a primary decision-maker for its American unit and exerted control over its finances, contrary to prior sworn testimony.

The Teva parent company used a complex web of shell corporations to transfer funds out of its U.S. business and into offshore accounts under its control, the attorney general said.

"By making misrepresentations to escape our reach, Teva Pharmaceuticals underestimated our commitment to securing justice for the people of New York," Ms. James said. "We have already been successful in demonstrating the harm that Teva USA and others inflicted on New Yorkers, but this new evidence shows an even greater disregard for the pain and destruction that this company fueled."

A spokesperson for Teva said Monday that the company denies misleading the court. "After the court is fully briefed we expect the judge to rule in our favor," the spokesperson said.

Ms. James's office filed claims in March 2019 related to the opioid crisis in New York against an array of opioid manufacturers and distributors, many of which have since settled. The attorney general is currently seeking discovery for the next phase of its case against Teva's U.S. unit, in which the court would determine the size of the judgment the company would have to pay.

American depositary receipts of Teva fell 4.4%, to $7.12, in early trading.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

July 11, 2022 10:56 ET (14:56 GMT)

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