HYDERABAD: Nearly six months after taking over troubled California-based nutritional supplement maker Natrol Inc, the city-based Aurobindo Pharma Ltd’s affiliate Aurobindo Pharma USA Inc, moved court alleging fraud by Natrol’s previous owners.
According to Aurobindo, Natrol’s previous owner Plethico Pharmaceuticals Ltd perpetrated a fraud on Natrol, Natrol’s creditors and the bankruptcy court.
Natrol had filed for Chapter 11 Bankruptcy Protection in June 2014 and Aurobindo emerged as the highest bidder to acquire Natrol and other affiliates - for $132.5 million (approximately Rs 810 crore) including liabilities.
In its suit, Aurobindo said Plethico perpetrated $25 million fraud via a fictitious company involving phony e-mail and bank accounts, forged documents and people masquerading as contractors fooling lenders before the bankruptcy proceeding and the court after the chapter 11 case began.