Mallinckrodt on Friday announced that it has reached an agreement in principle to settle lawsuits filed by Cuyahoga and Summit Counties in Ohio accusing the drugmaker of fuelling the opioid crisis. Under the announced terms, Mallinckrodt will pay a fine of $24 million and donate $6 million worth of generic products, including addiction treatment products.
"Mallinckrodt is pleased we were able to reach a settlement in principle with the counties that made sense for all parties," commented general counsel Mark Casey. Shares in the drugmaker surged as much as 21% on the news.
Casey noted that the settlement will give Mallinckrodt time to pursue a "global resolution" over a wave of opioid lawsuits across the US. People close to the matter recently disclosed that Mallinckrodt was exploring options, including a potential bankruptcy filing,
The news additionally follows speculation that Purdue Pharma plans to offer as much as $12 billion under a global settlement to resolve opioid lawsuits across the US.
Last month, an Oklahoma judge ordered Johnson & Johnson to pay $572 million over claims of deceptive marketing of opioids in the state (For related analysis, see ViewPoints: Johnson & Johnson's loss in opioid case seen as win for industry).
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