HAYWARD, Calif.--(BUSINESS WIRE)--June 29, 2006--IMPAX Laboratories, Inc. (OTC:IPXL - News) announced today it has settled a suit brought against it in 2003 by Solvay Pharmaceuticals, Inc. alleging that IMPAX engaged in false advertising practices dating back to 1998 in connection with the marketing of two of the Company's ten Lipram pancreatic enzyme supplements as well as two discontinued pancreatic enzyme supplements. Under the settlement, IMPAX will pay $23 million to the plaintiffs, of which $12 million will be paid immediately from the Company's cash reserves, which total approximately $42 million currently. The balance will be paid over the next six years. Sales and gross profits from these two Lipram products were not material to IMPAX's results.
