Attorneys

ATTORNEY GENERAL SCHMITT ANNOUNCES UPDATED SETTLEMENT WITH OPIOID MANUFACTURER MALLINCKRODT – kmmo.com

Attorney General Eric Schmitt has announced an update to a global settlement framework agreement between state attorneys general, local subdivisions and the opioid manufacturer Mallinckrodt (MNK), its subsidiaries, and certain other affiliates.

A news release says under the new settlement, MNK, currently the largest generic opioid manufacturer in the United States, will pay $1.6 billion of cash into a trust that will go toward abating the opioid crisis, including valid claims related to MNK’s role in the opioid crisis raised by non-governmental claimants. MNK will pay the $1.6 billion according to this schedule:

$450 million upon emergence from bankruptcy;
$200 million annually on first and second anniversary of emergence from bankruptcy; and
$150 million annually on third through seventh anniversaries of emergence from bankruptcy.

Details about how much each state will receive, how the money will be distributed, and how the trust will be administered are all still being negotiated.

MNK also agrees that its opioid business will be subject to stringent injunctive relief that, among other things, will prevent marketing and ensure systems are in place to prevent drug misuse.

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