Former Ranbaxy Owners Ordered to Pay $385M for Hiding FDA Probes

May 6, 2016

The two former owners of India's Ranbaxy Laboratories have been ordered to pay $385 million to Daiichi Sankyo Co., the Japanese pharmaceutical company that bought the drugmaker in 2008.

Daiichi Sankyo said former shareholders of Ranbaxy concealed and misrepresented critical information concerning the U.S. Justice Department and FDA investigations during the $4.6 billion sale.

Soon after the acquisition, Daiichi Sankyo faced penalties from the U.S. FDA and ultimately the company’s main drug-ingredient plant in Toansa was banned from exporting to the U.S.

Former owners, Malvinder Mohan Singh and brother, Shivinder Mohan Singh, plan to challenge the Singapore International Arbitration Centre verdict.

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