Drug-maker Mallinckrodt may renege on $1.7 billion opioid settlement

Drug-maker Mallinckrodt may renege on a $1.7 billion opioid settlement, putting the entire settlement at risk.

The situation: In a June 5 SEC filing, the company’s board revealed it might not make the scheduled $200 million opioid settlement payment next week.
* Mallinckrodt could file for a second bankruptcy, potentially wiping out the entire settlement.
* Victims could lose roughly $170 million in total compensation, while the rest of the money was to be allocated to state and local governments for drug treatment and healthcare programs.

The impact: If Mallinckrodt files a second bankruptcy, payouts would go first to company executives, staff, and other creditors, with opioid-related claims paid out last.
* Joseph Steinfeld, an attorney representing individuals harmed by Mallinckrodt’s medications, called the potential move “devastating” and underscored the damages caused by the company’s opioid sales.

The context: Mallinckrodt’s financial maneuver comes as drug makers, wholesale companies, and pharmacy chains involved in the prescription opioid crisis have agreed to pay out over $50 billion in settlements.
* Most firms involved in these agreements are larger and more financially stable than Mallinckrodt.

View original article on NPR

This summary was created by an AI system. The use of this summary is subject to our Terms of Service.

Contact us about this post






Leave a Reply

Your email address will not be published. Required fields are marked *