Natrol owner Aurobindo asks a bankruptcy court for an order before previous owner Plethico Pharmaceuticals agrees to pay close to the price of a phantom engineering contract Plethico claimed as a debt. Aurobindo alleged Plethico sold Natrol to prevent creditors from uncovering the sham.

Natrol owner Aurobindo asks a bankruptcy court for an order before previous owner Plethico Pharmaceuticals agrees to pay close to the price of a phantom engineering contract Plethico claimed as a debt. Aurobindo alleged Plethico sold Natrol to prevent creditors from uncovering the sham.

Last year Aurobindo acquired Plethico’s Natrol dietary supplements business in the U.S., which was divested as part of court-directed bankruptcy proceedings. A few months on, the Hyderabad-based drug maker filed a case charging the seller of perpetrating fraud. Aurobindo has now informed Indian stock exchanges that it agreed to settle the matter in return for certain cash payments and transfer of assets from Plethico.

Gaspari Nutrition, acquired by Allegro Nutrition, sought Chapter 11 protection after its debt load outstripped its revenue outlook. Natrol threw in the towel and filed after federal judges consolidated multiple class action claims accusing the firm of false advertising for its joint relief products.