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Court Provides Final Approval of Settlement with Direct Purchaser Class in the Multidistrict Antitrust Litigation; Final Court Approval Concludes the Antitrust Multidistrict Litigation

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Indivior PLC's subsidiary, Indivior Inc., receives final Court approval for a $385m settlement with the Direct Purchaser class, concluding the anti-trust multi-district litigation matter.
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The final court approval of Indivior PLC's settlement with the Direct Purchaser class closes a significant chapter in the company's legal affairs. Settling for $385 million, the company eliminates the uncertainty that typically surrounds ongoing litigation. From a legal standpoint, the resolution of such a high-profile antitrust case is noteworthy. Antitrust lawsuits can result in substantial financial penalties and they often indicate systemic issues within a company's business practices that need addressing. The dismissal of the Direct Purchaser class claims suggests that the company has now rectified the alleged anticompetitive behavior, potentially restoring trust among stakeholders and paving the way for a more compliant business operation going forward.

Indivior PLC's settlement of the antitrust MDL has immediate financial implications. The $385 million settlement figure is substantial and would likely have been accounted for in previous financial statements as a contingent liability. Now that the settlement has been finalized, the company's financials will reflect a significant cash outflow. Investors and analysts should examine Indivior's balance sheet strength to assess whether this settlement impacts its ability to invest in growth or return value to shareholders. In the longer term, the resolution of the litigation may remove a cloud of investor uncertainty, potentially leading to a re-evaluation of the company's stock. Depending on the company's insurance coverage for such settlements, the net financial impact could be mitigated.

For the pharmaceutical industry and particularly for companies specializing in addiction treatment like Indivior, the resolution of antitrust litigation can have broader market implications. Antitrust cases often lead to increased scrutiny of pricing and distribution practices within the industry. While the immediate impact on Indivior is a one-time financial hit, the long-term effect could include changes to how companies in the sector approach market competition. Industry peers will likely monitor this settlement closely, as it may set precedents for how similar cases are handled and resolved. Additionally, Indivior's ability to move past this litigation may provide it with a competitive advantage, as it can now focus on its core business without the distraction and reputational damage associated with ongoing legal battles.

RICHMOND, Va., Feb. 29, 2024 /PRNewswire/ -- Indivior PLC (LSE: INDV; Nasdaq: INDV), a leading addiction treatment company, today announced that its subsidiary, Indivior Inc., has received final Court approval for its settlement with the Direct Purchaser class, concluding the anti-trust multi-district litigation ("MDL") matter.

On October 22, 2023, Indivior Inc. entered into a settlement agreement with the remaining Direct Purchaser class for $385m. On February 27, 2024, the United States District Court for the Eastern District of Pennsylvania entered an order granting final judgement and order of dismissal approving the Direct Purchaser class settlement and dismissing the Direct Purchaser class claims. This ruling concludes the Antitrust MDL.

About Indivior
Indivior is a global pharmaceutical company working to help change patients' lives by developing medicines to treat addiction and serious mental illnesses. Our vision is that all patients around the world will have access to evidence-based treatment for the chronic conditions and co-occurring disorders of substance use disorder (SUD). Indivior is dedicated to transforming SUD from a global human crisis to a recognized and treated chronic disease. Building on its global portfolio of OUD treatments, Indivior has a pipeline of product candidates designed to both expand on its heritage in this category and potentially address other chronic conditions and co-occurring disorders of SUD, including alcohol use disorder and cannabis use disorder. Headquartered in the United States in Richmond, VA, Indivior employs more than 1,100 individuals globally and its portfolio of products is available in 37 countries worldwide. Visit www.indivior.com to learn more. Connect with Indivior on LinkedIn by visiting www.linkedin.com/company/indivior.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/court-provides-final-approval-of-settlement-with-direct-purchaser-class-in-the-multidistrict-antitrust-litigation-final-court-approval-concludes-the-antitrust-multidistrict-litigation-302075022.html

SOURCE Indivior PLC

FAQ

What settlement amount did Indivior Inc. receive approval for?

Indivior Inc. received final Court approval for a $385m settlement with the Direct Purchaser class.

What type of litigation matter did the settlement conclude?

The settlement concluded the anti-trust multi-district litigation matter.

Which court granted final judgement and order of dismissal for the settlement?

The United States District Court for the Eastern District of Pennsylvania granted final judgement and order of dismissal for the settlement.

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