McNeil pleads guilty in Federal District Court

On Tuesday, Johnson & Johnson subsidiary McNeil-PPC Inc pleaded guilty in Federal District Court in Philadelphia to one count of information charging the company for selling liquid medicine contaminated with metal. According to the United States Department of Justice, the company has agreed to pay about $25 million to resolve the case. Out of $25 million, $20 million will be paid as criminal fine, while $5 million as forfeit.

About four years ago, the company had launched recalls of some medicines, including Infants' Tylenol and Children's Motrin. The medicines were made at the company's Fort Washington plant.

As per the criminal charge, the infants' liquid medicines were adulterated because they were not made or packed conformance with current Good Manufacturing Practices. It was violation of the Food, Drug and Cosmetic Act of federal government. Apart from metal particles, there were also moldy odors and labeling problems. The Sudafed allergy tablets of the company had incorrectly repeated the word 'not' in place of 'do not divide, crush, chew or dissolve the tablet'.

In the case involving metal particles, the troubles for the company had started in 2009 when a customer complained after noticing 'black specks' in a bottle of Infants' Tylenol. According to the customer, the specks were nickel and chromium particles. In 2010, the company's product sales fell by about 19%.

Carol Goodrich, a spokeswoman for McNeil Consumer Healthcare, said, "The plea agreement closes a chapter and that the company has been implementing enhanced quality and oversight standards across its entire business".

As per the reports, McNeil's guilty plea has been accepted by the District Court for the Eastern District of Pennsylvania. The company has agreed to further safety measures before opening its Fort Washington facility once again, as per the reports.