Reckitt Benckiser to Pay $1.4 Billion to Settle U.S. Opioid-Addiction Drug Probes
July 11 2019 - 2:56AM
Dow Jones News
By Adria Calatayud
Reckitt Benckiser Group PLC (RB.LN) will pay $1.4 billion as
part of a settlement to resolve a U.S. federal investigation into
sales and marketing of Suboxone Film, an opioid-addiction
treatment, by its former subsidiary Indivior PLC (INDV.LN).
U.K.-based Reckitt said Thursday that it has reached agreements
with the U.S. Department of Justice and the Federal Trade
Commission to resolve their long-running investigations into the
company in connection with the Indivior indictment, as well as
claims relating to Medicaid programs for those states choosing to
participate in the settlement.
Indivior was wholly demerged from the group in 2014, Reckitt
said. Indivior was charged with organizing a multibillion-dollar
fraud to drive up sales of Suboxone Film by U.S. federal
prosecutors earlier this year. Indivior has denied the charges.
Reckitt, the owner of Durex condoms and Dettol cleaning product,
said it has acted lawfully at all times and denied all allegations
that it engaged in any wrongful conduct. The settlement is in the
best interests of the company and its shareholders, it said.
The resolution will also protect the Reckitt's participation in
all U.S. government programs, the company said.
Reckitt said the settlement amount will be funded through
existing borrowing facilities and cash generation. The company had
booked a $400 million provision, which will be increased to $1.5
billion at its half-year results to cover the settlement and any
remaining litigation exposures, it said.
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
July 11, 2019 02:41 ET (06:41 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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