By Jody Godoy
(Reuters) -Teva Pharmaceutical Industries Ltd has agreed to pay $420 million to settle shareholder litigation alleging the company hid an anti-competitive scheme to fix the price of generic drugs.
The settlement was disclosed on Tuesday in papers filed in federal court in Connecticut. The company did not admit to wrongdoing.
Teva spokesperson Kelley Dougherty said the "vast majority" of the settlement will be funded by the company's insurers.
"This resolution is in the overall best interest of Teva and the patients who continue to rely on us each day for the world’s largest portfolio of generics medicines," Dougherty said in an email.
Shareholders had sued the company in 2016 amid scrutiny by government authorities into alleged price fixing by major pharmaceutical companies.
"We are very pleased with this outstanding result after five years of hard fought litigation and preparation for trial," said Joseph Fonti, an attorney for the investors.
The agreement requires the approval of the judge overseeing the case.
The U.S. Justice Department sued Teva in 2020, alleging the company conspired with competitors to raise prices for generic drugs. The company has denied the allegations.