Invidior lashes out over opioid-related fraud charges
The U.K. drug maker offers two-pronged pushback: first, that the indictment is without merit and, second, that prior owners are at fault. Investors seem not to care, as its stock plummets.
A PR crisis can be devastatingly costly, as drug companies are discovering from fallout over efforts to end the opioid crisis in the U.S.
The latest company to suffer tough legal developments is Invidior, which produced Suboxone Film, an opioid that was billed as safer than other similar medicines. A grand jury in Virginia has handed up a fraud indictment against the drug maker.
If convicted on the multiple counts, Invidior could face billions in dollars of penalties.
CNBC reported:
The indictment charged Indivior and its subsidiary Indivior Inc with conspiracy, health care fraud, mail fraud and wire fraud. If Indivior is convicted, the government will seek to have it forfeit at least $3 billion, the indictment said.
The British pharmaceutical company lost millions in stock value. The backlash has also touched former owner Reckitt Benckiser, which spun off the company in 2014.
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