(Reuters) – Britain’s Reckitt Benckiser (RB) <RB.L> said it would pay up to $1.4 billion (£1.1 billion) to resolve all U.S. federal investigations into the firm in connection with the sales and marketing of Suboxone Film by its former prescription pharmaceuticals business Indivior <INDV.L>.
RB said on Thursday it had reached agreements with the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) to resolve the investigation into a business that was wholly demerged from the company in 2014.
The U.S. Justice Department had accused Indivior of illegally boosting prescriptions for its blockbuster opioid addiction treatment.
“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,” the consumer goods giant said in a statement.
RB said the agreement avoided the costs, uncertainty and distraction associated with continued investigations, litigation and the potential for an indictment at a time of significant transformation at the company and during a CEO transition.
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Edmund Blair)