Teva Pays $420 Million to End Generic-Drug Securities Suit (1)

Teva Pharmaceutical Industries Ltd. will pay $420 million to resolve securities fraud litigation over its alleged role in an industrywide conspiracy to inflate the price of generic drugs across the board, according to a federal court filing in New Haven, Conn.

The pension funds leading the case sought preliminary approval for the agreement late Tuesday from Judge Stefan R. Underhill, who’s overseeing the class action on behalf of shareholders in the U.S. District Court for the District of Connecticut.

The pact is the second-largest securities settlement in the district’s history, “larger than all but one” nationwide last year, and among ...