Settlement Agreement	9 Months Ended
Mar. 31, 2016
Settlement Agreement
Settlement Agreement	Note 24. Settlement Agreement On March 7, 2016, Lannett Company, Inc. (“Lannett”) entered into a Settlement Agreement Release and Mutual Release (“Settlement Agreement”) with one of its former customers, pursuant to which Lannett and such customer resolved all disputes between the parties with respect to the termination of the direct sales business relationship by Lannett on December 31, 2013. Pursuant to the terms of the Settlement Agreement, Lannett will pay to one of its former customers the following amounts: (a) in calendar year 2016, $8.0 million in cash; (b) in calendar year 2017, at the discretion of the customer, either $8.0 million in cash or a $10.0 million credit memorandum to be applied against invoices for the purchase of products from Lannett or any of its subsidiaries by such customer; and (c) in calendar year 2018, at the discretion of the customer, either $10.0 million in cash or a $12.0 million credit memorandum to be applied against invoices for the purchase of products from Lannett or any of its subsidiaries by such customer. As a result of the settlement agreement, the Company recorded a reduction to net sales in the amount of $23.6 million, which represents the net present value of the future cash payments.

Note 24. Settlement Agreement

On March 7, 2016, Lannett Company, Inc. (“Lannett”) entered into a Settlement Agreement Release and Mutual Release (“Settlement Agreement”) with one of its former customers, pursuant to which Lannett and such customer resolved all disputes between the parties with respect to the termination of the direct sales business relationship by Lannett on December 31, 2013.

Pursuant to the terms of the Settlement Agreement, Lannett will pay to one of its former customers the following amounts: (a) in calendar year 2016, $8.0 million in cash; (b) in calendar year 2017, at the discretion of the customer, either $8.0 million in cash or a $10.0 million credit memorandum to be applied against invoices for the purchase of products from Lannett or any of its subsidiaries by such customer; and (c) in calendar year 2018, at the discretion of the customer, either $10.0 million in cash or a $12.0 million credit memorandum to be applied against invoices for the purchase of products from Lannett or any of its subsidiaries by such customer.

As a result of the settlement agreement, the Company recorded a reduction to net sales in the amount of $23.6 million, which represents the net present value of the future cash payments.