Taro Pharmaceuticals Inc. will pay a $205.7 million criminal penalty to settle allegations it participated in a conspiracy to fix prices on generic drugs, the Justice Department said Thursday.
The company reached a deferred-prosecution agreement in which it is cooperating with the federal government’s yearslong investigation, and agreed to pay restitution as well as $213.3 million in civil damages to settle claims related to federal health-care programs.
The Justice Department alleged the company participated in two criminal antitrust conspiracies that each involved a competing generic drug manufacturer and various executives. The department said Taro admitted that its sales “affected by the charged conspiracies” exceeded $500 million.
“Taro is committed to the highest level of ethics and integrity and we will continue to fully cooperate with the government on its ongoing investigation into the generic pharmaceutical industry,” said Taro Chief Executive Officer Uday Baldota in prepared remarks.
As part of the agreement, both parties will file a joint motion to defer any prosecution and trial from the charges filed on Thursday. The Justice Department will drop the two felony counts after a three-year period if the company adheres to its commitments.
The conspiracies took place between 2013 and 2015, and involved fixing prices, allocating customers and rigging bids for various drugs, including for those that treated people with seizures, bipolar disorder, pain and arthritis, the Justice Department said.