Monday January 01, 2018
Dr. Reddy's Reports CPSC-Related Settlement
Dr. Reddy's December 19 announced that it had reached a $5 million settlement in a case that included CPSC matters. The allegations involved concerns about Section 15 reporting and failure to use child-resistant blister packaging with five of the company's prescription drugs.
The company said (bit.ly/2BQ6Cc8) the allegations date to 2012. However, they first gained notice in 2014 when Reuters and other outlets reported that CPSC was looking into the matter and that there also were False Claims Act concerns. The source was the company's SEC filing.
Then, 18 months ago (PSL, 6/13/16), CPSC publicly acknowledged that it had referred the matter to the Justice Department. As of the PSL press time, neither CPSC nor Justice had released new information about the case.
Compared to recent CPSC settlement, this action is in line with the agency's FY2017 average of $4.9 million over six cases. CPSC has announced no settlements in FY2018.