Teva Securities Suit Over Generic Drug Price Fixing Survives (1)

A securities class action accusing Teva Pharmaceutical Industries Ltd. of misleading investors about its strategy of hiking prices on generic drugs will largely be allowed to proceed, the District of Connecticut ruled.

The court allowed the plaintiffs, the Ontario Teachers’ Pension Plan Board and the Anchorage Police & Fire Retirement System, to press forward with most of their claims under the Exchange Act and the Securities Act. But it dismissed one claim, and let two of the individual defendants escape the suit.

The plaintiffs claim that Teva implemented a strategy to raise prices across a large swath of its generic ...