Plethico Pharmaceuticals Ltd., which has twice been accused of fraud in connection with a natural products company it sold in bankruptcy, may have once again negotiated its way out of legal trouble, the Wall Street Journal reported today. The latest accusations come from India’s Aurobindo Pharma, which told stock exchange regulators it’s agreed to accept $23.3 million from Plethico. The transaction would settle the fraud action Aurobindo initiated last week in the bankruptcy court that is overseeing the process of paying off the debts of Natrol, a company Plethico sold to Aurobindo at a chapter 11 sale. Aurobindo paid $132.5 million for Natrol, a thriving supplier of vitamins and supplements to major retailers. According to Aurobindo, $25 million worth of construction that was supposed to be going on at Natrol was allegedly a ruse to move money into Plethico’s pocket. Plethico placed Natrol into bankruptcy protection in June 2014 to get breathing room to deal with Cerberus Capital Group, Natrol’s lead secured lender, which voiced similar suspicions about the construction deal last year and demanded its loans be repaid.
