Type of Claim: Investigating
Claim Period: 29 March 2011 – 9 April 2019
Defendants: Indivior PLC / Reckitt Benckiser Group PLC
Governing Law: English Law
On 9 April 2019 the US Department of Justice (DOJ) released a press statement that:
“A federal grand jury sitting in Abingdon, Virginia, had indicted Indivior Inc. (formerly known as Reckitt Benckiser Pharmaceuticals Inc.) and Indivior PLC (Indivior) for engaging in an illicit nationwide scheme to increase prescriptions of Suboxone Film, an opioid drug used in the treatment of opioid addiction.
According to the indictment, Indivior obtained billions of dollars in revenue from Suboxone Film prescriptions by deceiving health care providers and health care benefit programs into believing that Suboxone Film was safer, less divertible, and less open to abuse than other opioid-addiction treatment drugs. Indivior is also alleged to have sought to boost profits by using a “Here to Help” program to connect opioid-addicted patients to doctors the company knew were prescribing opioids at high rates and in a clinically unwarranted manner.”
The United States Attorney’s Office for the Western District of Virginia and the DOJ’s Consumer Protection Branch are prosecuting the case and are seeking US$3 billion in damages.
Indivior Plc shares closed on the 9 April 2019 at £1.0595 prior to the DOJ press release and lost over two-thirds of their value to close at £0.3005 on 10 April 2019 and have since recovered some ground but are still down approximately 50% from their 9 April closing price. The current market value of Indivior Plc is c£350m.
During part of the time of the alleged illicit behaviour Indivior Plc was a wholly owned subsidiary of Reckitt Benckiser Group plc.
A US Class Action was issued on behalf of Indivior ADR holders in the District Court of New Jersey (19-CV-10792).
Stewarts are monitoring the situation to determine whether shareholders may have a claim against either Indivior plc and/or Reckitt Benckiser Group plc.
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