Call Us - We're Easy to Talk To (214) 999-9999

Generic Drug Maker Ranbaxy Agrees to $500 Million Settlement

On the front of its Business Day section, the New York Times reports that “the generic drug maker Ranbaxy pleaded guilty…to federal drug safety violations and will pay $500 million in fines to resolve claims that it sold subpar drugs and made false statements to the Food and Drug Administration about its manufacturing practices at two factories in India, the company and federal prosecutors announced.” According to the Times, “the settlement is the largest in history involving a generic manufacturer and drug safety, the Justice Department said” in a news release.

Bloomberg News reports, “Ranbaxy, in papers filed in federal court in Baltimore today, admitted it had sold batches of drugs that were improperly manufactured, stored and tested.” In a statement, Maryland US Attorney Rod Rosenstein said, “‘This is the largest false claims case ever prosecuted in the District of Maryland, and the nation’s largest financial penalty paid by a generic pharmaceutical company’ for violation of the Food, Drug and Cosmetic Act [FDCA].”

The AP reports that Ranbaxy “agreed to a fine and forfeiture of $150 million as well as an additional $350 million penalty to settle civil claims that it submitted false statements to Medicaid, Medicare and other government health care programs.” In addition, the company “admitted making false statements to the Food and Drug Administration about dates of stability testing, which detect impurities of a drug and determine appropriate storage conditions for it.” Also covering the story are the Wall Street JournalModern HealthcareBuffalo (NY) Business First, AFP, and Reuters.

From the American Association for Justice news release.

Bob Kraft

I am a Dallas, Texas lawyer who has had the privilege of helping thousands of clients since 1971 in the areas of Personal Injury law and Social Security Disability.

About This Blog

The title of this blog reflects my attitude toward those government agencies and insurance companies that routinely mistreat injured or disabled people. As a Dallas, Texas lawyer, I've spent more than 45 years trying to help those poor folk, and I have been frustrated daily by the actions of the people on the other side of their claims. (Sorry if I offended you...)

If you find this type of information interesting or helpful, please visit my law firm's main website at You will find many more articles and links. Thank you for your time.

Find us on your preferred network