OTC Drug Distributor Sues Contract Manufacturer Over Recalls

Law360, New York (October 19, 2012, 1:56 PM EDT) -- Over-the-counter drug distributor Prestige Brands Inc. launched a breach of contract suit against Guardian Drug Co. in New York federal court Thursday, claiming the OTC drug manufacturer failed to indemnify Prestige for losses stemming from pediatric drugs recalled to comply with U.S. Food and Drug Administration requirements.

Indemnification for losses caused by manufacturing defects was one of the terms and conditions of purchase orders in which Guardian supplied OTC drugs to Prestige, according to the complaint. Yet Guardian has refused to indemnify Prestige for losses connected...
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