Taro Deferred Prosecution Agreement

“Today`s charges filed in the U.S. Court for the Eastern District of Pennsylvania are indicative of my office`s ongoing efforts to investigate and incriminate companies and executives who set generic drug prices,” said U.S. Attorney McSwain. “We and our partners in the Cartel Department and other federal competition authorities continue to focus on price agreement and illegal distribution of the generic drug market. These indictments and the related agreement on deferred criminal prosecutions, subject to the Court`s agreement, are another important achievement in this area. As part of an agreement with the DOJ on late prosecutions, the DOJ will provide information on the behaviour that took place between 2013 and 2015. If the company complies with the terms of the agreement, including the payment of $205.7 million, the DOJ will terminate the information at the end of a three-year period. The company also entered into a framework agreement with the civil division DOJ, subject to the final agreement and approval of the agency in which the company agreed to pay $213.3 million to settle all claims related to federal health programs. In connection with the filing, the DOJ announced a law enforcement agreement (DPA) to adjourn the proceedings against Taro, in which Taro said it was prepared to pay $205,653,218 $US in criminal penalties and admitted that sales targeted by the offending plots exceeded $500 million. Under a three-year agreement on deferred criminal prosecutions, Taro will pay $205.7 million and agree to participate in the department`s ongoing investigation, the Justice Department said.

The Cartel Division also announced an adjourned Lawsuit Agreement (DPA) to settle charges against Taro U.S.A., which found that the company acknowledged that its sales were affected by the offending conspiracies and exceeded US$500 million. According to the prosecution and the DPA, Taro U.S.A. and its co-conspirators have agreed to set prices, assign clients and manipulate bids for many generic drugs, including drugs for the prevention and control of seizures and the treatment of bipolar disorder, pain and arthritis and various skin diseases. In June 2020, the DOJ accused Glenmark Pharmaceuticals, Inc., of cashing in $200 million in surcharges for pravastatin and other drugs through illegal agreements with competing generic drug manufacturers. Glenmark did not accept any wrongdoing and has committed to fight the charges. Taro is a science-based pharmaceutical company dedicated to meeting the needs of its customers through the discovery, development, manufacture and marketing of high-quality health products. For more information about Taro, please visit the company`s website at www.taro.com. The Cartel Division also announced a Deferred Prosecution Agreement (DPA) to settle charges against Taro U.S.A., among which the company agreed to pay a fine of US$205,653,218, and admitted that its sales affected by the offending conspiracies exceeded US$500 million.

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