published Thursday, May 16th, 2013

Drug maker to pay Tennessee $5.53 million in settlement

NASHVILLE — Generic drug maker Ranbaxy will pay Tennessee $5.53 million under a $500 million national agreement that resolves claims the company sold inferior drugs and made false statements regarding how the drugs were manufactured, State Attorney General Bob Cooper announced today.

Tennessee joined with other states and the federal government in what the Justice Department called the largest settlement in history regarding questionable drug operations involving a generic manufacturer.

“We hope this agreement will help improve the safety of drug manufacturing practices throughout the industry,” Cooper said in a news release.

The investigation rose from a whistleblower’s lawsuit in Maryland, filed under the federal False Claims Act. It alleged Ranbaxy knowingly made, distributed and sold generic drugs with strengths, purity or quality below standards made by the Federal Drug Administration.

At issue were 26 of the firm’s products, manufactured in India from 2003 to September 2010.

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