Indivior faces lawsuit from ex-parent company RB over Suboxone marketing scheme
Former Indivior CEO Shaun Thaxter was sentenced to six months in prison earlier this year. (Pixabay)
Indivior has taken hit after hit from U.S. prosecutors for its marketing of Suboxone Film, a notorious addiction therapy treatment. With one executive in jail and billions of dollars in settlement money already signed over, Indivior is now facing a suit from its former parent company looking to siphon off even more cash.
Indivior plans to “vigorously defend itself” against a U.K. lawsuit from former owner Reckitt Benckiser, now known as RB, seeking $1.34 billion in damages tied to the company’s rapacious marketing scheme for opioid addiction therapy Suboxone Film, Indivior said in a statement.
Last week, RB filed a suit in U.K. high court seeking those damages from Indivior, which it owned until 2014. According to The Guardian, the legal challenge is a “procedural” step with drugmakers required to file claims within six years of a demerger.
The proposed damages would cover nearly all of the $1.4 billion settlement RB signed in July 2019 to settle the U.S. Department of Justice’s claims about its role in the Suboxone scheme. RB admitted no wrongdoing as part of the settlement package.
Indivior called the suit “without merit” in a statement and said it had not yet been served by the court.
[huge_it_slider id=”15″]RB’s filing—with damages that would exceed Indivior’s current market cap—is the latest in a series of blows against Indivior tied to its Suboxone marketing that has included massive settlements and jail time for one executive.
In October, former Indivior CEO Shaun Thaxter was sentenced to six months in federal prison after pleading guilty to his role in a scheme to snare Medicaid formulary coverage for Suboxone by misleading officials about its dangers to children.
