Generic Drug Manufacturer to Pay $500 Million in Penalties

Ranbaxy USA, Inc., a subsidiary of Ranbaxy Laboratories Limited, a generic pharmaceuticals manufacturer in India, plead guilty to a wide array of criminal charges, including the improper storage of drug samples, continuing to sell medications that had failed purity tests, delaying a voluntary recall of medication, selling adulterated batches of drugs and making false statements to the Food and Drug Administration (FDA).

Part of the plea agreement includes a fine of $150 million and an$350 million penalty to settle civil claims that it submitted false statements to Medicaid, Medicare and other government health care programs.  This $500 Million settlement is the largest financial penalty against a drug company for violating the Federal Food, Drug and Cosmetic Act, which protects the purity of drugs sold in the United States.  The deal is a result of years long investigations into the professional conduct of the company, after they were advised by a whistleblower that the company was knowingly falsifying documents to speed up the import process into the U.S.  The FDA continues to focus its attention on the quality of drugs being created overseas and shipped into the United States.

Some companies will try to skirt the law to increase their bottom line, and this can cause serious injury and even death.  If you believe you have been injured by an adulterated medication, contact our offices at 1-800-881-1447 today.  We’ll fight hard to protect your rights and get you the compensation you deserve.

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