Mallinckrodt's Opioid Resolution Through Generic Unit Bankruptcy May Be 'Test Case'
Mallinckrodt to pay $1.6bn and place its generics unit in bankruptcy under agreement in principle for US global settlement; six states are not on board, including New York, whose suit is still set to go to trial March 20.
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NY AG has ‘no comment’ on whether criminal charges will be pursued against company executives; NC AG predicts ‘north of 40 states’ expected to accept settlement and would then need to convince municipalities to come on board. States with ongoing litigation against manufacturers may opt for jury trial instead.
Reps. McKinley and Kaptur ask commissioner Hahn about potential for shortages if Teva’s proposal to provide free opioid addiction treatment goes into effect. States are pushing for more money and stricter injunctive terms in settlement talks with manufacturers and distributers.
The allegations (that Mallinckrodt misrepresented safety and efficacy) are similar to other suits but the insurance avenue provides another route to obtain financial remuneration.