(Alliance News) - Indivior PLC on Monday said former parent company Reckitt Benckiser PLC has withdrawn a USD1.4 billion claim against the FTSE 250-listed drugmaker.
In November, Indivior announced that FTSE 100-listed Reckitt Benckiser had submitted a claim against the company. The claim related to an indemnity contained in the demerger agreement entered into between the two companies in November 2014.
Indivior was spun off from the consumer health and hygiene firm and listed on the London Stock Exchange in December of that year.
In 2019, RB had agreed to pay USD1.4 billion following a US federal investigation into the marketing of Suboxone, which alleged Indivior had carried out an illegal scheme to boost sales of the medicine to treat dependence on opioids.
The investigation alleged that when Indivior was still an RB subsidiary, it had used unproved claims to market one version of Suboxone, including that it was more difficult to abuse than other similar drugs.
On Monday, Indivior said pursuant to the settlement, RB has agreed to withdraw the USD1.4 billion claim and to release Indivior from any claim for indemnity under the Demerger Agreement relating to the US Department of Justice and Federal Trade Commission settlements which RB entered into in July 2019, as well as other claims for indemnity.
Therefore, Indivior has agreed to pay RB a total of USD50 million over the next five years. Indivior has also agreed to release RB from any claims to seek damages relating to its settlement with the DOJ and the FTC.
Indivior shares closed down 0.1% at 130.30 pence Monday, while RB shares closed up 4.5% at 6,554.00p.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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Indivior (INDV)