Medsafe will no longer prosecute the makers of an arthritis supplement found to cause serious liver damage, in return for an end to sales of the product.
The medicine safety body had charged the makers of the product, Arthrem, with nine breaches of the Medicines Act.
It had repeatedly warned the company, Promisia Integrative, to stop selling it.
Under the settlement, the company has accepted it was wrong and will no longer make and sell the product.
The company was first warned in 2016 about making false claims about the product.