Teva Pharmaceutical stands accused of defrauding Medicare using a kickback scheme to boost sales of Copaxone, prompting the US government to file a lawsuit against the drugmaker. The announcement of the lawsuit resulted in a sharp 15.4% decline in Teva’s stock price. The US government alleges that Teva made $300 million in illegal donations to two charitable foundations over a nine-year period to cover the rising cost of Copaxone, a multiple sclerosis drug. The kickbacks resulted in taxpayers footing the bill for rising drug prices as reduced co-payment expenses eased downward pressure on prices. Although the low share price may be tempting to investors, Teva’s lack of ethics should give pause. Read more here.