NBTY Settles Pseudoephedrine Recordkeeping Charge

BOHEMIA, N.Y.--Supplement industry giant NBTY Inc. agreed to pay $950,000 to settle civil claims by the U.S. Attorney's office that it failed to keep proper records related to shipments of pseudoephedrine-containing products. The charges were filed in April 2003, and prosecutors originally sought approximately $146 million in injunctive relief under the Controlled Substances Act (CSA).

According to the U.S. Attorney's Office for the Eastern District of New York, the charges stemmed from "NBTY's failure to give prior notice to the Drug Enforcement Administration of suspicious shipments of pseudoephedrine tablets and failing to obtain identification from customers to whom NBTY sold pseudoephedrine tablets."

While pseudoephedrine tablets are used as cold medication, they are also used in the illicit manufacture of methamphetamine and have been regulated under the CSA since 1997. The regulations require a variety of recordkeeping, identification and other procedures to ensure pseudoephedrine tablets are not obtained for illegal purposes.

NBTY insisted any violations were unintentional. Sales of the pseudoephedrine-containing products accounted for less than 2 percent of the company's total sales at the time.