Teva Pharma discloses SEC bribery investigation...shares trade up 3.2%

[SoCalDem]

http://www.guardian.co.uk/world/feedarticle/10376619
Teva Pharma discloses SEC bribery investigation

AP foreign, Monday August 6 2012

NEW YORK (AP) — Teva Pharmaceutical, the largest generic drug company in the world, said it is the target of a federal bribery investigation into its business in Latin America. Teva said the Securities and Exchange Commission has subpoenaed documents and is looking into its compliance with the Foreign Corrupt Practice Act, which makes it illegal for people or companies to make payments to officials of foreign governments in order to get or keep business. The Israeli company disclosed the inquiry in a form filed with the Securities and Exchange Commission last week. Teva said it was notified of the investigation July 9 and said the probe is in its early stages. Teva added that it is conducting its own voluntary investigation.

snip

Wal-Mart Stores Inc. is being investigated for FCPA violations after The New York Times reported in late April that its Mexican unit allegedly paid millions of dollars in bribes to speed building permits and gain other favors. The Times also reported that company executives didn't notify authorities even after Wal-Mart found evidence of the scheme during a probe dating to 2005.


snip

U.S. shares of Teva Pharmaceutical Industries rose $1.25, or 3.2 percent, to $40.76 in afternoon trading.

[dballance]

1. How odd the corrupt, dirty investment firms must have driven up Teva's price

I guess it's like supporting a member of the family. Now that the corrupt Wall Street traders think there is a possibility Teva is bribing foreign officials those traders are more secure in buying Teva shares because they know bribes will allow Teva to keep doing business in those foreign countries. Therefore it's a more secure stock to buy than the stock from a company not bribing officials because the "honest" company could get kicked out of a country and lose a whole market because they aren't playing the game like everyone else.

Does anyone else see my logic here as somewhat reasonable?