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Opioid Giant Mallinckrodt Reportedly Agrees to $1.6 Billion Global Settlement Framework

 

  • 47 AGs and thousands of municipalities reportedly reached a global settlement framework with opioid manufacturer Mallinckrodt PLC and related entities (collectively, “Mallinckrodt”) to resolve allegations that Mallinckrodt engaged in deceptive business and marketing practices, misrepresented the risks and marketed off-label uses of prescription opioids, and paid illegal kickbacks.
  • According to California AG Xavier Becerra’s office, under the terms of the settlement, Mallinckrodt will be enjoined from marketing its opioid products and will be required to create systems that would prevent the diversion of opioids from proper supply channels. Mallinckrodt will also pay $1.6 billion to cover the costs of opioid addiction treatment and related efforts, with the potential for additional payments in the future, among other things.
  • The proposed settlement will reportedly also award plaintiffs with warrants for 20 percent of the company’s outstanding shares, and Mallinckrodt’s Ireland-based parent company will not file for bankruptcy.