Reckitt Benckiser (LSE:RB.)
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1 Year : From Apr 2019 to Apr 2020
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.
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(END) Dow Jones Newswires
July 11, 2019 02:41 ET (06:41 GMT)
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