Teva Settles Legal Dispute Over Executive Compensation
In its effort to settle a months-long class action lawsuit alleging that Teva Pharmaceutical's practices surrounding the disclosure of executive compensation did not meet regulatory guidelines, Teva has agreed to pay plaintiffs' legal and related costs of $1.1 million, as well as $200,000 in "compensation to the plaintiffs," the company announced today.
In addition to the monetary settlement, Teva will begin disclosing individual executive's compensation beginning with its 2013 annual report, expected for release in early 2014. Prior to today's settlement, Teva had reported its top 11 executives' pay only as a group, which Sharon Hannes and Ehud Kamar, the two Teva shareholders who filed the class action suit, said was a violation of U.S. and Israeli rules.
The settlement is subject to approval by the Tel Aviv District Court.
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