5 of 6
BACKNEXT
Leiner Health Products
Leiner Health Products

A Food and Drug Administration investigation at Leiner Health Product's plant in Fort Mill, S.C., found that the drugmaker's manufacturing practices were not up to snuff. That prompted Leiner to suspend production and issue a recall of its over-the-counter allergy and pain-relief drugs, which accounted for 30% of the company's annual sales.

Six months later, the Department of Justice launched a separate investigation at the same production facility. That drove Leiner's top customers, including major drugstore chains and wholesale giants, to take their business to competitors, the company said.

The severe sales drop forced Leiner to downsize its workforce by 40% and consolidate its manufacturing facilities. One year after the recall, Leiner filed for bankruptcy protection to restructure debt of nearly $436 million. Just a few months later, vitamin and supplement manufacturer NBTY Inc. bought Leiner for $371 million.

NEXT: GM and Chrysler

Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
LAST UPDATE: Mar 23 2010 | 5:30 AM ET
More Galleries
A sampling of beers being made with traditional Latin flavors A small but growing number of craft breweries are including passion fruit, Mexican cinnamon and other traditional Latin flavors. More
Banks won't lend? Use these guys instead Banks often have exhaustive approval processes, high minimums, and flawless credit requirements. But there's a wealth of non-bank alternatives for those who need capital fast. Here are some of the leaders. More
Facebook launched my startup These entrepreneurs relied exclusively on Facebook, Twitter and Instagram to jumpstart their small businesses. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.