NEW YORK (CN) – Teva Pharmaceutical Industries Ltd. said it received a $100 million settlement from an unnamed broker who placed auction-rate securities in its portfolio.
The Israel-based generic drug company, which runs its U.S. business out of North Wales, Pa., declined to name the institution that made the payment, citing confidentiality restrictions.
The settlement is one in a string of settlements since the collapse of the $330 billion auction-rate securities market in February this year, in which institutions agree to buy back bad auction-rate securities. Firms were accused of failing to fully inform investors of the benefits and risks of the securities, which mostly cover municipal debts and student loans. Just last week, three firms agreed to buy back $60 billion in damaged auction-rate securities and pay hefty fines.
Teva will record the cash as one-time finance income and leave it out of third-quarter 2008 non-GAAP adjusted results.