On Friday, the Attorney General of New York filed a motion by order to show cause to New York state court requesting that the tribunal vacate its order dismissing Teva Pharmaceutical Industries, Ltd., known as Teva Parent, from a December 2021 opioid case.
In the motion, Attorney General James argues that Teva Parent made intentional misrepresentations to the Office of Attorney General and the court about its involvement with Teva Pharmaceuticals USA’s role in the opioids industry in the United States to avoid prosecution and accountability.
According to a press release by the Office of Attorney General, in December 2021, Attorney General James won an opioid trial against Teva Parent’s subsidiary Teva USA in which Teva Parent was originally named as a codefendant. The motion states that Teva Parent was dismissed from the lawsuit because it successfully argued that Teva USA, and other subsidiaries named in the lawsuit, were separately managed and financially independent subsidiaries, through affidavits by Doron Herman, Senior Vice President and “Head of Tax” at Teva Parent.
However, Attorney General James states that her office has uncovered evidence contradicting Teva Parent’s sworn testimony and affidavits stating that it transacted no business nor held property in the United States and had no role in the American opioids business. According to the motion, Teva Parent used a complex web of shell corporations to transfer significant funds out of Teva USA and into its own offshore accounts, and was in fact the primary decision maker for Teva USA. Further, the motion argues that Teva Parent maintained property and employees in the United States and exerted control over Teva USA’s finances.
The Office of Attorney General states that it has obtained a forensic analysis of Teva USA and Teva Parent’s financial relationship and multiple legal filings contradicting Teva Parents affidavits. The complaint argues that Teva Parent was integrally engaged in the American opioid business and oversaw the launch of certain opioid lines in the United States. Additionally, it states that Teva Parent routinely traveled to the United States to meet with senior federal government officials in connection with their opioid products, conducted opioid-focused meetings with physicians in the United States and even made decisions about whether to ship suspicious orders.
The Attorney General argues that due to these misrepresentations the court should vacate its dismissal of Teva Parent from the opioid litigation and allow the Office of Attorney General to examine Teva Parents role in the opioid crisis. Further, the Office states that it would like to examine whether Teva Parent could transfer money out of Teva USA and compromise its ability to pay New York state the damages owed from the December 2021 judgment.
