Bankrupt Akorn Recalls All Products

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Akorn (Gurnee, IL) through its bankruptcy (Chapter 7) trustee is recalling various within-expiry human and animal products because the company has ceased all operations, including quality activities. In February, Akorn announced that it failed to find a buyer for its operations and terminated all employees (see letter).

“The discontinuation of the quality program means the company will not be able to support or guarantee that the products will meet all intended specifications through the labeled shelf life of the product,” the company said in a recall notice. “Further distribution or use of any remaining product on the market should cease immediately.”

In 9/2022, the Justice Department said Akorn had agreed to pay $7.9 million to resolve a whistleblower’s allegations that it caused Medicare to pay false claims by delaying its request to FDA to switch drugs from prescription to over-the-counter status. A department statement says Akorn caused Medicare Part D to pay for three generic drugs that were no longer eligible for Medicare coverage. As part of the settlement, it says, Akorn admitted that it continued to sell generic drugs under obsolete prescription-only labeling. The whistleblower received about $946,000 from the settlement proceeds, the statement said.

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