Forest Labs In Tentative Pact To Settle US Civil Probe
By Peter Loftus, Of DOW JONES NEWSWIRES
Forest Laboratories Inc. (FRX) has reached a tentative settlement over
government civil allegations that it improperly marketed antidepressants and a
thyroid drug, but a government criminal probe continues.
Forest disclosed in a regulatory filing Monday it reached an agreement in
principle in May to settle the civil aspects of U.S. federal and state probes.
Penalties in the civil settlement are covered by a $170 million reserve Forest
created in April.
But Forest also disclosed Monday that the May agreement "does not resolve the
government's ongoing investigation into potential criminal law violations"
related to the antidepressants Celexa and Lexapro, and thyroid drug Levothroid.
Forest said it's continuing to cooperate with the criminal investigation.
A Forest spokesman said the company is still in discussions with the
government, and declined to comment further or provide details of the
settlement.
Forest began disclosing a few years ago that the government was looking into
its marketing practices. In February, the U.S. Justice Department unsealed a
lawsuit in U.S. District for the District of Massachusetts alleging Forest
marketed the antidepressants for unapproved uses in children, and paid kickbacks
to induce doctors to prescribe the drugs.
Shares of New York-based Forest fell 3 cents to $28.64.
-Peter Loftus; Dow Jones Newswires; 215-656-8289; peter.loftus@dowjones.com
(END) Dow Jones Newswires
11-09-091159ET
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