Agreement to resolve all federal investigationsSource: RNS
RB reaches settlement to fully resolve all federal investigations
11 July 2019, Slough ‐ RB today announced it has reached agreements with the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) to resolve the long-running investigation into the sales and marketing of Suboxone Film by its former prescription pharmaceuticals business Indivior, a business that was wholly demerged from the Group in 2014.
Under the terms of the agreements, RB will pay a total of up to $1.4 billion to fully resolve all federal investigations into RB in connection with the subject matter of the Indivior indictment and claims relating to state Medicaid programs for those states choosing to participate in the settlement. The resolution will also protect the Group's participation in all U.S. government programmes.
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. It avoids 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. This is a non-criminal resolution and is on the basis that there is no admission of any violation of law or any wrongdoing by RB or any RB Group employee.
The settlement amount will be funded through existing borrowing facilities and cash generation. RB has a provision of $400 million and will increase its provision to $1.5 billion at its half-year results. RB believes this will cover the settlement and any remaining litigation exposures.
This announcement contains inside information.
For further information, please contact:
RB +44 (0)1753 217800
SVP, Investor Relations
Director, External Relations and Government Affairs
Finsbury +44 (0) 20 7251 801
Faeth Birch / Philip Walters
Notes to Editors
Suboxone is a pioneering drug used to treat opioid dependence among the increasing numbers of people who have been suffering or dying from their addictions to opioids. It is an alternative to methadone injections and was the first to enable those who needed it to have treatment at home. Developed by RB Pharmaceuticals at the request of the National Institute on Drug Abuse, it was given expedited approvals by the FDA in recognition of its importance to the U.S. healthcare system, awarded orphan drug status and launched in 2002.
Suboxone and its related products have helped millions of people return to a normal life. Prior to Indivior's separation from RB, five million people were treated in the U.S. between 2003 and 2014 for opioid dependence.
RB* is a leading consumer healthcare company inspired by a vision of the world where people are healthier and live better. Its purpose is to make a difference by giving people innovative solutions for healthier lives and happier homes. As a leading consumer healthcare company, RB takes its responsibility to promote health and wellbeing very seriously. Through its two business units, Health and Hygiene Home, RB has operations in over 60 countries and its products reach millions of people globally every day. RB's drive to achieve, passion to outperform and commitment to quality and scientific excellence is manifested in the work of over 40,000 diverse, talented entrepreneurs worldwide.
For more information visit www.rb.com. *RB is the trading name of the Reckitt Benckiser group of companies.
Reckitt Benckiser Group plc's LEI code is 5493003JFSMOJG48V108
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