Settlement Agreement	12 Months Ended
Jun. 30, 2016
Settlement Agreement
Settlement Agreement	Note 22. Settlement Agreement On March 7, 2016, the Company 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 $23.6 million charge to the Consolidated Statement of Operations, which represents the present value of the required payments. At June 30, 2016, the Company had a settlement liability of $19.5 million recorded on the Consolidated Balance Sheet, of which $7.0 million is due over the next twelve months.

Note 22. Settlement Agreement

On March 7, 2016, the Company 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 $23.6 million charge to the Consolidated Statement of Operations, which represents the present value of the required payments. At June 30, 2016, the Company had a settlement liability of $19.5 million recorded on the Consolidated Balance Sheet, of which $7.0 million is due over the next twelve months.