Monday, 13 May 2013
Ranbaxy Company to pay $500 million to settle US fraud charges
Ranbaxy Laboratories on Monday agreed to pay $500 million (around Rs 2,743 crore) to resolve fraud allegations made in a whistle-blower's lawsuit and federal criminal charges that the company sold adulterated drugs and lied about it to US regulators. This is the largest false claims case involving a generics drugs manufacturer.
Ranbaxy agreed to pay a criminal fine and forfeiture totalling $150 million and to settle civil claims for $350 million. The generic drugs at issue were manufactured at Ranbaxy's facilities in Paonta Sahib and Dewas, India. They include acne drug Sotret, epilepsy and nerve pain drug gabapentin, and antibiotic ciprofloxacin.
Ranbaxy, in papers filed in Federal court in Baltimore, admitted it had sold batches of drugs that were improperly manufactured, stored and tested. The company also pleaded guilty to making fraudulent statements to the Food and Drug Administration (FDA) about how it tested drugs at two of its Indian plants.
Ranbaxy agreed to pay a criminal fine and forfeiture totalling $150 million and to settle civil claims for $350 million. The generic drugs at issue were manufactured at Ranbaxy's facilities in Paonta Sahib and Dewas, India. They include acne drug Sotret, epilepsy and nerve pain drug gabapentin, and antibiotic ciprofloxacin.
Ranbaxy, in papers filed in Federal court in Baltimore, admitted it had sold batches of drugs that were improperly manufactured, stored and tested. The company also pleaded guilty to making fraudulent statements to the Food and Drug Administration (FDA) about how it tested drugs at two of its Indian plants.
