WOODCLIFF LAKE, N.J., April 27, 2011 /PRNewswire/ -- Par Pharmaceutical Companies, Inc. (NYSE: PRX) announced today it reached a settlement in principle to resolve claims brought by the pharmacy Ven-A-Care of the Florida Keys, Inc. on behalf of the United States, Texas, and Florida under state and federal law, as well as claims brought by the Attorneys Generals of Alaska, South Carolina, and Kentucky under state law for $154 million (pre-tax).
Together with many other pharmaceutical manufacturers, Par is named as a defendant in numerous civil lawsuits that relate to drug price reporting by such companies. The cases, which are pending in federal and state courts, generally allege that the prices reported by pharmaceutical manufacturers caused government entities to pay inflated reimbursements for drugs under Medicaid or other programs. Par denies the allegations.
Upon execution of definitive settlement documents and certain government and court approvals, the settlement will resolve lawsuits relating to federal contributions to state Medicaid programs in 49 states (excluding Illinois), and claims of Texas, Florida, Alaska, South Carolina and Kentucky relating to their Medicaid programs. The settlement will eliminate the majority of the alleged damages asserted against Par in the various drug pricing litigations and removes all trials that had been scheduled to date.
Par Pharmaceutical Companies, Inc. is a US-based specialty pharmaceutical company. Through its wholly-owned subsidiary's two operating divisions, Par Pharmaceutical and Strativa Pharmaceuticals, it develops, manufactures and markets high barrier-to-entry generic drugs and niche, innovative proprietary pharmaceuticals. For press release and other company information, visit www.parpharm.com.
Safe Harbor Statement
Certain statements in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. To the extent any statements made in this news release contain information that is not historical, these statements are essentially forward-looking and, as such, are subject to known and unknown risks, uncertainties and contingencies, many of which are beyond the control of the Company, which could cause actual results and outcomes to differ materially from those expressed herein. Risk factors that might affect such forward-looking statements include those set forth in Item 1A of the Company's most recent Annual Report on Form 10-K, in other of the Company's filings with the SEC from time to time, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and on general industry and economic conditions. Any forward-looking statements included in this news release are made as of the date hereof only, based on information available to the Company as of the date hereof, and, subject to any applicable law to the contrary, the Company assumes no obligation to update any forward-looking statements.
SOURCE Par Pharmaceutical Companies, Inc.