Teva Pharmaceuticals, the generic drug maker, has agreed to pay $225 million over allegations of price-fixing related to its sales of a popular cholesterol-lowering drug. Under the agreement Monday with the US Department of Justice, Teva will also be required to divest its business making and selling the drug, pravastatin, a generic version of the brand-name drug Pravachol.

Glenmark Pharmaceuticals, another manufacturer of generic drugs, agreed to pay a $30 million penalty and divest itself of its business manufacturing an selling the drug as well.

The US division of the Israeli-based Teva issued a statement which said that the situation was due to the actions of a single former employee, who struck agreements with competitors of Teva which unfairly limited competition between the companies between 2013 and 2015. That employee was no longer with the company, having departed in 2016, according to the statement.

The US Department of Justice brought actions against seven makers of generic drugs, including Teva and Glenmark, alleging that price-fixing, bid-rigging, and market allocation schemes were used to unfairly rig markets for the drugs. All seven companies settled their cases and entered into deferred prosecution agreements.

Had any of the cases gone to trial, convictions could have led to the companies receiving mandatory bans from participation in Medicare, Medicaid, and other federally funded health programs.