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Published on 5/30/2008 in the Prospect News Distressed Debt Daily.

Leiner hearing for approval of Department of Justice settlement continued to June 11

By Jennifer Lanning Drey

Portland, Ore., May 30 - Leiner Health Products Inc.'s hearing for approval of its proposed settlement with the Department of Justice was continued to June 11, according to a notice posted by the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, under the agreement, Leiner would plead guilty to one count of mail fraud and pay $10 million in lieu of a fine.

The agreement would resolve an investigation into the production, control and distribution of over-the-counter drug products at the company's now defunct Fort Mill, S.C., facility.

Leiner is a Carson, Calif.-based manufacturer of store-brand vitamins, minerals and nutritional supplements. The company filed for bankruptcy on March 10. Its Chapter 11 case number is 08-10446.


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