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ARTICLE · 04 SEPTEMBER 2023

DOJ Obtains First Divestitures In A Criminal Antitrust Case

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The U.S. Department of Justice Antitrust Division ("DOJ") recently resolved a criminal case with Teva Pharmaceuticals and Glenmark Pharmaceuticals via deferred prosecution agreements ("DPAs")...

United StatesAntitrust/Competition Law
John Majoras
John Majoras
Eric Enson
Eric Enson
Julia McEvoy
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Seeking divestitures in a criminal case sets precedent for DOJ and is consistent with the Administration's mantra of "every tool in the kit" approach to aggressive antitrust enforcement.

The U.S. Department of Justice Antitrust Division ("DOJ") recently resolved a criminal case with Teva Pharmaceuticals and Glenmark Pharmaceuticals via deferred prosecution agreements ("DPAs"), which include a novel remedy for a criminal antitrust case: divestiture. The "usual" penalty for a corporation for a criminal antitrust violation is a fine and possibly probation.

DOJ indicted Glenmark in June 2020, and Teva in August 2020, for their participation in alleged conspiracies to allocate customers and rig bids for, and fix prices of, generic drugs sold in the United States. By entering the DPAs, Teva and Glenmark avoided debarment from participating in U.S. federal health care programs.

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