Mallinckrodt settles opioid lawsuits with $30m agreement
Mallinckrodt Pharmaceuticals has settled lawsuits over its alleged role in America’s deadly opioid crisis.
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The company, which owns the branded painkiller Roxicodone, said the settlement was reached in connection to lawsuits pending in multidistrict opioid litigation in the US District Court for the Northern District of Ohio.
Under the agreement, Mallinckrodt - which is tax registered in Ireland and listed on Nasdaq - will pay $24m in cash and provide $6m in generic products, including addiction treatment products. It will also pay $500,000 in two years’ time “in recognition of the counties’ time and expenses”.
The company added: “In the event of a comprehensive resolution of government-related opioid claims, Mallinckrodt has agreed that that the two plaintiff counties will receive the value they would have received under such as resolution, less the payments described above.
“All named Mallinckrodt entities will be dismissed with prejudice from the lawsuit.”
Vice president and chief legal officer Mark Casey said Mallinckrodt was “pleased” to have finalised the settlement. “With the Track 1 Cases resolved, we look forward to focusing our efforts on achieving a global resolution of all the opioid lawsuits.”
The US Center for Disease Control and Prevention estimates that on average, 130 Americans die every day from opioid overdoses. That includes illegal drugs such as heroin, but over-prescription of powerful painkillers is increasingly being blamed for the crisis, with manufacturers’ accused of down-playing their addictive nature.
Earlier this month, OxyContin maker Purdue announced it was filing for bankruptcy after striking a $10bn agreement with 24 states and five US territories.