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New Jersey company admits to violations in suit settlement

Sometimes New Jersey businesses can produce defective products that can hurt or injure those using them. In these cases, product liability suits can be brought by injured consumers or governmental agencies. This commercial litigation can be expensive, time consuming and damage a company’s reputation if not handled correctly.

Med Prep Consulting — a New Jersey drug compounding company — has recently settled a lawsuit with the U.S. Department of Justice’s civil division after mold was found in several of the intravenous drugs produced by the company. The company compounds drugs into syringes, glass vials and infusion bags before sending the medication to hospitals in New Jersey and surrounding states.

In the suit, the company was charged with unsanitary conditions, misbranding drugs and using incorrect dosages. Furthermore, the company was found to be making certain drugs without the correct prescriptions. Prior to the settlement, the company has recalled many contaminated drugs from the market. It also voluntarily halted production of all 80 medications it had been compounding.

As part of the settlement, the company will remain closed until all of these issues are resolved including the unsanitary conditions and admitted to the shortcomings.

New Jersey businesses that are facing product liability suits should know that they have options that can help them quickly settle the suit while remedying the problem. There are many alternative dispute resolution options that can keep the suit out of court and as quiet and quick as possible. By keeping the suit out of court, it will not become part of the public record. In some cases, settlement details can even be kept confidential. This can save companies additional bad publicity and loss of customers.

Source: The Star-Ledger, “Tinton Falls drug compounding business admits to health violations and will remain closed,” Alexi Friedman, June 28, 2013

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