Why Teva Stock Sank On Thursday
Thursday was an eventful day for drug maker Teva Pharmaceutical Industries (NYSE: TEVA). Not only did the company release its latest set of quarterly earnings, it also reached a settlement in a major lawsuit. In what could have been a much worse trading session for the stock, it ultimately closed the day with a less than 2% decline.
Arguably, the more important development is the legal settlement, in which Teva has agreed to pay a total of $523 million to the state of New York. This arrangement is part of a sprawling lawsuit involving a clutch of pharmaceutical companies accused of exacerbating the opioid crisis with their business practices.
Last December, a jury in the case found Teva and several of its subsidiaries liable in the matter. The settlement resolves the case. "This is a landmark day in our battle against the opioid crisis," the state's attorney general was quoted as saying in a statement disseminated to the media.
Source Fool.com
