Reckitt to pay $1.4 billion to settle Indivior probe

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Reckitt to pay $1.4 billion to settle Indivior probe

On Thursday, the 11th of July 2019, Reckitt Benckiser Group Plc., a British multinational consumer goods business headquartered in Slough, United Kingdom, had agreed to pay about $1.4 billion in order to iron out all US Federal probs on its sales and marketing of an opioid addiction treatment launched earlier by its former prescription pharmaceutical business, Indivior.

Followed by the reveal of the news, Indivior’s shares price had soared more than 38 percent on Thursday’s (July 11th) pre-market trading. In effect, the settlement would require the British consumer goods group to raise an amount of $1.5 billion to cover costs of investigation, however, previously the company had told that it had been seeking a settlement at $400 million.

According to the company’s Thursday’s (July 11th) statement, the Reckitt Benckiser had reached an accord with the US Department of Justice alongside US Federal Trade Commission (FTC) in order to resolve the probe that had spin-off the company’s entire pharmaceutical business back in 2014.

Denying all of the accusations, Reckitt Benckiser said in a statement on Thursday (July 11th), “While RB has acted lawfully at all times and expressly denies all allegations that it engaged in any wrongful conduct, after careful consideration, the board of RB determined that the agreement is in the best interests of the company and its shareholders”.