The agreement with the direct purchasers will mark the conclusion of the MDL, once the settlements for the Claimants and EPs are approved by the United States District Court for the Eastern District of Pennsylvania
The trial, which was scheduled to begin on October 30, 2023, will be canceled. (Credit: Tingey Injury Law Firm on Unsplash)
Indivior, a leading addiction treatment company, announced that its subsidiary, Indivior, has reached an agreement to resolve the claims brought by the direct purchasers (the “Claimants”) in the In re Suboxone Antitrust Litigation multi-district litigation (“the MDL”).
Indivior previously announced settlement agreements with two other groups of plaintiffs in the MDL, a class of End Payors (the “EPs”) and various State Attorneys General (the “States”). The agreement with the direct purchasers will mark the conclusion of the MDL, once the settlements for the Claimants and EPs are approved by the United States District Court for the Eastern District of Pennsylvania (the “Court”). The trial, which was scheduled to begin on October 30, 2023, will be canceled.
As part of the Agreement with the Claimants, Indivior will pay $385m and will take a charge of $228 million in the third quarter, which will be excluded from adjusted earnings. This charge represents the additional amount above the current remaining provision of $157 million for the Antitrust MDL, which reflects the previously announced settlement agreements with the States and End Payors. The Agreement will become final once approved by the Court. Payment of the $385 million is expected to be made in November 2023 and funded from Indivior’s existing cash.
“We are pleased to achieve this settlement to conclude this legacy multi-district antitrust matter,” said Indivior Chief Executive Officer Mark Crossley. “The resolution of this litigation, which was filed over a decade ago, provides greater certainty for all Indivior stakeholders and allows us to continue focusing on our important work for patients suffering from opioid use disorder and mental health illnesses around the world.”
Indivior expects that Court approval of the Agreement will remove the previously disclosed material uncertainty related to Indivior’s going concern basis of accounting.
Source: Company Press Release