Settlements and Verdicts

Bankruptcy, Mail Fraud

Carson, CA: (May-09-08) Federal officials brought a lawsuit against Leiner Health Products Inc., over the production, control and distribution of certain over-the-counter drug products at the company's now defunct South Carolina facility. The suit was filed as part of an ongoing investigation of the company's trade practices. Court papers indicate that the company is working to emerge from Chapter 11 protection.

In a recent announcement, the nutritional supplements maker stated that it will plead guilty to one count of mail fraud and forfeit $10 million in cash in lieu of a fine. It also stated that it will retain the right to manufacture and distribute its vitamins and mineral products. Leiner Health officials stated that the company filed for bankruptcy March 10, 2008 after Food and Drug Administration warnings and investigations by the Department of Justice forced the company to suspend production and distribution of all over-the-counter products manufactured, packaged or tested at its US facilities. [LEINER HEALTH PRODUCTS PROPOSES SETTLEMENT OF MANUFACTURING INVESTIGATION]

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