Mallinckrodt Reaches $30-Million Settlement in Principle in Opioid Litigation
Mallinckrodt, along with its wholly owned subsidiaries, Mallinckrodt LLC and SpecGx LLC, has reached a $30-million settlement in principle with two Ohio counties in pending opioid litigation.
Mallinckrodt reached the settlement in principle with Cuyahoga and Summit Counties in Ohio in connection with lawsuits pending in multidistrict opioid litigation. If finalized, Mallinckrodt says the settlement will fully resolve the Track 1 Cases against all named Mallinckrodt entities that are currently scheduled to go to trial in October 2019. The cases assert various claims related to the opioid business operated by SpecGx. Under the agreement, Mallinckrodt will pay a total sum of $24 million in cash and donate $6 million in generic products, including addiction treatment products, and all named Mallinckrodt entities will be dismissed with prejudice from the lawsuit.
In a separate development, Mallinckrodt has agreed to sell its wholly owned subsidiary, BioVectra, a contract development and manufacturing organization of active pharmaceutical ingredients (APIs) and intermediates, to an affiliate of HIG Capital, a private equity investment firm, for approximately $250 million (see story).