Federal prosecutors in New Jersey announced that a pharmaceutical manufacturer, a subsidiary of a larger drug company, agreed to pay $2.25 million to resolve allegations that it violated the Controlled Substances Act. According to the government's contentions in the settlement agreement, between January 1, 2019 and August 31, 2021 the company failed to account for approximately 3.1 kg of oxycodone, 7.7 kg of hydrocodone and 30 kg of temazepam.
The alleged violations came to light through DEA on-site inspections of the manufacturer that began in the summer of 2021. Diversion investigators from the DEA New Jersey Field Division conducted the investigation that led to the settlement.
In addition to the civil settlement, the company entered into an administrative memorandum of agreement with DEA. The agreement requires the manufacturer to improve its operations and remain in compliance with the law, and it stays in effect for three years.
The claims resolved by the settlement are allegations only. There has been no determination of liability.