Reckitt Benckiser to pay $1.4bn to resolve US federal investigation settlement
Source - SMW
Nurofen owner Reckitt Benckiser has agreed to pay a settlement of $1.4bn to "fully resolve" all US federal investigations into how its former prescription pharmaceuticals subsidiary, Indivior, sold and marketed Suboxone Film, a drug which treats opioid addiction.
Although Reckitt said in a statement that it had "acted lawfully at all times and expressly denies all allegations that it engaged in any wrongful conduct", the Board determined that the agreement would be in the best interests of the company and its shareholders.
The agreement avoided the costs, uncertainty and distraction associated with continued investigations, litigation and the potential for an indictment at a time of significant transformation under RB 2.0 and during CEO transition, the company said. It added that the resolution was "non-criminal" and on the basis that there was no admission of any violation of law or any wrongdoing by RB or any RB Group employee.
The settlement amount would be funded through existing borrowing facilities and cash generation. RB said it had a provision of $400m and would increase its provision to $1.5bn at its half-year results. RB said it believed this would cover the settlement and any remaining litigation exposures.