EAST BRUNSWICK, N.J., May 31, 2019 /PRNewswire/ -- Heritage Pharmaceuticals Inc. announced today that the Company has entered into a deferred prosecution agreement ("DPA") with the United States Department of Justice, Antitrust Division ("DOJ") relating to a one-count Information for a conspiracy involving glyburide. In conjunction with the DPA, Heritage will pay a $225,000 fine.
In addition, the Company separately agreed to a settlement with the United States Department of Justice, Civil Division to resolve potential civil liability under the False Claims Act in connection with the antitrust conduct. Under the terms of the settlement, the Company has agreed to pay $7.1 million.
These resolutions fully resolve Heritage's potential exposure in connection with the DOJ's ongoing investigation into the generics pharmaceutical industry. The conduct underlying the Company's resolutions with DOJ involved two former Heritage executives, both of whom pleaded guilty in January 2017 to felony antitrust charges; they are now awaiting sentencing, which is currently scheduled for September 26, 2019. The Company's Board of Directors terminated both executives in August 2016 after learning of their antitrust conduct and discovering they orchestrated a years-long embezzlement scheme that looted tens of millions of dollars from the Company. Heritage has filed a complaint against both individuals in the United States District Court for the District of New Jersey to recover these losses.
"We are pleased to put these issues behind us and focus on Heritage's future," stated William S. Marth, Global President & CEO of the Heritage Group, North America and Europe. "In the years since the conduct occurred, Heritage has revamped its leadership team, strengthened its operations, and built a robust pipeline of future products that will expand the availability of generic pharmaceuticals for consumers. Heritage looks forward to the opportunity to better serve its customers and to compete vigorously for their business."
Heritage Pharmaceuticals Inc. is a specialty pharmaceutical company engaged in the development, manufacturing, sales and marketing of generic and legacy branded pharmaceutical products for the U.S. prescription drug market. Since inception, our customers have experienced the benefits of our continuous product expansion and global alliance network that has produced an impressive portfolio of over 150 products spanning multiple dosage forms. Heritage's products cover several therapeutic categories, including but not limited to: oncology, cardiovascular, metabolic disease, anti-infective and pain management. Whether its oral solids or complex injectables, the Heritage portfolio is poised to continue to rapidly expand and deliver the Value Driven Medicine required to keep our customers competitive in the marketplace. Let our formula of high quality and consistent supply work for you as we continue to provide affordable healthcare solutions to the U.S. consumer.
SOURCE Heritage Pharmaceuticals Inc.