Mallinckrodt’s Second Bankruptcy Would cut $1 Billion from Opioid Settlement | STL Today

The Irish based company, Mallinckrodt’s, second bankruptcy may place creditors in ownership of the company and cut $1 billion from the ongoing settlement with victims. The company produces a substantial amount of the prescription opioids through its U.S. offices and had previously filed for bankruptcy in 2020. However, it failed to pay its shareholders according to the previous plan and is now negotiating a second bankruptcy with drastic implications for recipients of trust funds. Following the devastating effects of prescription opioids, Mallinckrodt faced thousands of lawsuits over allegedly deceptive and misleading marketing tactics to promote its highly addictive products. Funds placed in a trust were designated to fund victim relief but appear to not be considered in the latest plan.

The new deal would leave opioid creditors with $1 billion less than the $1.7 billion settlement that Mallinckrodt agreed to pay as part of its 2022 exit from the company’s earlier bankruptcy.

Source: Mallinckrodt’s Second Bankruptcy Would cut $1 Billion from Opioid Settlement