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Greenwood Sues Drugmarker For $9.5M

Last updated on Friday, June 14, 2013

(GREENWOOD) - The city of Greenwood filed a lawsuit against a local drugmaker last week.

The Daily Journal reports Elona Biotechnologies received $8.4 million in tax money from Greenwood in 2010.

The city originally loaned the money for a new production facility so the company could grow from a small company to a major drug maker but negations with private investigators fell apart. The major drug was going to be insulin for diabetes.

The foreclosure lawsuit alleges that the firm owes $9.5 million, which includes the $8.4 million loaned and the accruing interest.

The city is now foreclosing on the 50,000 square foot facility after they failed to pay bills.

If the company gives the money back, it is unlikely the city will get the full amount back after legal fees, which will result in less money for upcoming projects.

A hearing is set for June 18 in Johnson County Superior Court 1.

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