Drug-maker Mallinckrodt may renege on $1.7 billion opioid settlement – By Brian Mann (NPR) / June 12, 2023
The generic drug-maker Mallinckrodt says the company’s board might not make a $200 million opioid settlement payment scheduled for later this week.
In a June 5 filing with the Securities and Exchange Commission, the financially troubled firm said it faces growing questions internally and from creditors about the payout, which is part of a $1.7 billion opioid deal reached as part of a bankruptcy deal last year.
One possibility is that the company could file for a second bankruptcy, a move that could put the entire settlement at risk.
“It could be devastating,” said Joseph Steinfeld, an attorney representing individuals harmed by Mallinckrodt’s pain medications. “It potentially could wipe out the whole settlement.”
