Reckitt Benckiser Sues Indivior to Reclaim Settlement Fund
RB filed a lawsuit against Indivior to reclaim its losses after suboxone cases were resolved.
Indivior is being charged with a $ 1.34 billion lawsuit by former owner Reckitt Benckiser (RB) for misleading marketing of the opioid addiction therapy Suboxone film. To date, an indivior manager is already behind bars and the company has spent billions in resolution funds. In October, former Indivior CEO Shaun Thaxter was sentenced to six months in prison after pleading guilty of misleading Medicaid coverage for Suboxone.
FDA Commissioner Stephen M. Hahn, MD said at the time, “Opioid addiction and abuse is a huge public health crisis and it is one of the FDA’s highest priorities to take action to address it. Providing misleading information about the relative benefits of the product could undermine efforts to provide affordable treatment for those affected by this crisis. We will continue to work with the Department of Justice to investigate and hold accountable those who develop and participate in programs that harm public health. “
“The public needs to be able to trust drug manufacturers and their executives – especially when they market strong opioids,” added US First Assistant Attorney Daniel P. Bubar of the Western District of Virginia. “While he was Indivior’s chief executive, Shaun Thaxter violated that trust and must be held accountable.”
Photo by Brusk Dede on Unsplash
Thaxter has been fined $ 100,000 and will give up control of an additional $ 500,000. He resigned in June, the day before he pleaded guilty. The former executive has been replaced by Mark Crossley, who has been with the company since 2017.
“In July, Indivior agreed to pay $ 600 million to federal and state authorities over the next seven years after pleading guilty to misleading the Massachusetts Medicaid program about the danger of Suboxone to children,” said the Justice Department. The charge went on, “Indivior” promoted the film version of Suboxone (Suboxone Film) to doctors, pharmacists, Medicaid administrators and others across the country as being less divertable, less abusive and safer for children, families and communities than other buprenorphine drugs although such claims were never established. Indivior touted its “Here to Help” internet and telephone program as a resource for opioid dependent patients. Instead, however, Indivior partially used the program to connect patients with doctors who were known to prescribe Suboxone. To advance its scheme, Indivior announced a “discontinuation” of its Suboxone tablet form based on alleged “concerns about children’s exposure to” tablets, although Indivior executives knew the main reason for the discontinuation was for approval to delay generic tablet forms of the drug by the Food and Drug Administration. “
Now, in late November, Reckitt Benckiser has filed his lawsuit in a UK Supreme Court to reclaim funds from Indivior that it owned until 2014. The damages claimed are set to cover the $ 1.4 billion settlement signed in July 2019, the DOJ claims. Back in 2019, RB had agreed to come to an agreement with the New York Attorney General and five other states that had led legal disputes over his role in the crisis.
By the time RB settled his case, there was no admission of wrongdoing. Indivior has described the most recent case as “without merit” and stated that he will defend himself “vigorously”.
Indivior is being sued by former parent company RB over the Suboxone marketing plan
The Chief Executive Officer of the opioid manufacturer Indivior pleads guilty in connection with claims on drug safety
The Justice Department receives $ 1.4 billion from the Reckitt Benckiser Group for the largest recovery in an opioid drug case in United States history