leadf
logo-loader
viewIndivior PLC

Indivior ex-CEO sentenced to jail in the US over misleading safety claims

The US state attorney said Shaun Thaxter had “failed to prevent efforts to build profits through misleading safety claims, which led to millions of dollars in ill-gotten gains for Indivior”

Indivior PLC -

Indivior PLC’s (LON:INDV) former chief executive Shaun Thaxter has been sentenced to a prison term in the US for misrepresentations regarding the safety of the company’s main drug.

A US Federal Court committed Thaxter to six months in prison and ordered penalties of US$0.6mln to be paid in fines and forfeiture.

As CEO of Indivior, whose main product, Suboxone Film, is designed to help recovering opioid addicts avoid or reduce withdrawal symptoms, Thaxter “failed to prevent efforts to build profits through misleading safety claims, which led to millions of dollars in ill-gotten gains for Indivior”, the US Attorney Daniel P Bubar said.

Indivior earlier this year agreed to pay US$600mln to resolve liability to the US related to the marketing of Suboxone, following a US$1.4bn similar payment from former parent Reckitt Benckiser Group PLC (LON:RB.) last year.

Thaxter, who was in charge of Indivior from 2009 until June this year, on Thursday pleaded guilty to one misdemeanor count under the Responsible Corporate Officer Doctrine.

Indivior put out a statement on Friday to point out that the plea agreement between Thaxter and the US Department of Justice “is in his personal capacity and not on behalf of Indivior”.

It noted that its separate agreement with the US government in connection with the US$600mln payment from July 24, “remains unchanged”.

However, it still remains subject to approval by a federal judge, with a hearing having been scheduled for November 12.

Quick facts: Indivior PLC

Price: 101 GBX

LSE:INDV
Market: LSE
Market Cap: £740.11 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

IXICO report double-digit revenue growth and a more than doubling of profit

IXICO PLC's (LON:IXI) CEO Giulio Cerroni joins Proactive London's Katie Pilbeam to discuss the financial results for the year which ended 30 September 2020.  Cerroni talks through the strong double-digit revenue growth and the more than doubling of profit.  He goes on to explain...

10 minutes ago

2 min read