Reckitt said that it had acted lawfully at all times and expressly denied all allegations that it engaged in any wrongful conduct, but that after consideration determined that the agreement was in the best interests of the company and its shareholders.
Last month, RB picked PepsiCo executive Laxman Narasimhan as its next CEO, becoming the latest industry heavyweight to turn to a company outsider to tackle faltering growth and new media-savvy rivals.
Reckitt Benckiser shares rose 2.6% to 65.95 pounds at 0839 GMT on July 11.More news: Social media personality arrested for sexual assault, police say
In an effort to regain investor confidence after setbacks including a safety scandal in South Korea, a failed product launch and a cyber attack, Reckitt's outgoing boss Rakesh Kapoor launched a plan to split the group into two business units - one for health and one for hygiene and home products.
The settlement will cover multiple investigations into the company's subsidiary, Indivior (formerly known as Reckitt Benckiser Pharmaceuticals Inc.), and its alleged illegal marketing of its drug, the U.S. Department of Justice (DOJ) said.
An indictment back in April claimed Indivior had marketed its star drug as safer and less abusable than other treatments, deceiving healthcare providers and allowing the company to rake in billions of dollars in extra sales.
The federal investigation centred on a former Reckitt pharmaceutical subsidiary - spun off in 2014 and renamed Indivior - and marketing practices it deployed for Suboxone between 2006 and 2015. But investors feared the United States investigations could hinder the company's transformation.
The $1.4 billion recovery is the largest ever for a case involving an opioid, according to the DOJ.More news: Jenelle Evans Allegedly Lied About David Eason Killing Dog | Crime Time
The Office of Virginia Attorney General Mark Herring announced the major settlement with the Reckitt Benckiser Group on Thursday. It will pad that settlement fund through existing borrowing facilities and cash generation, the company said.
The company said it would increase its provision related to the investigations to $1.5 billion to cover both the cost of the settlement and "any remaining litigation exposures".
"Opioid withdrawal is hard, painful, and sometimes risky; people struggling to overcome addiction face challenges that can often seem insurmountable", the Assistant Attorney General Jody Hunt for the Department of Justice's Civil Division said in a statement.
The move by Reckitt came as Indivior lifted its outlook for 2019 sales and profit after a stronger-than-forecast first half.More news: Hrithik Roshan Super 30 collection reached to 12 Crore on opening day