India's Aurobindo Pharma has settled a U.S.-based lawsuit related to its acquisition of vitamin and health product maker Natrol from Plethico Pharmaceuticals in exchange for cash payments and a transfer of assets from the previous owner.
"Based on the discussions a settlement agreement has been reached, wherein Plethico group would assign $23.3M in cash in milestone payments, certain global IP rights and other assets," the company said in a notice to the Bombay Stock Exchange.
Aurobindo Pharma bought Natrol out of a U.S. bankruptcy proceeding last year for $132.5 million, but later alleged that some accounts by the former owner Plethico Pharmaceuticals showed certain discrepancies and also noted non-performance of obligations and filed the lawsuit on April 6 with the Delaware Bankruptcy Court, according to the exchange notice.
But the case has now been settled.
The lawsuit had followed claims last year made by a Cerberus Capital Management unit that had loaned money to Natrol when it was owned by Plethico in a case that was settled in full.
- here's the notice to the Bombay Stock Exchange