The largest maker of generic opioids filed for bankruptcy Monday in its bid to address $1.6 billion in lawsuit settlements stemming from the company’s role in fueling the national opioid crisis.
Mallinckrodt agreed in February to the settlement framework involving 47 attorneys general from states and territories over opioid-related lawsuits, The Hill reported.
“For years, (Mallinckrodt) balanced their business on the backs of a product they knew was dangerous and deadly,” Connecticut Attorney General William Tong said in a statement issued Monday.
“As Mallinckrodt now collapses and files for bankruptcy, this agreement ensures $1.6 billion will be placed in a trust and used to directly address the pain, suffering and trauma caused by the opioid epidemic,” Tong added.
According to CNBC, more than 3,000 lawsuits have been filed accusing drug manufacturers of engaging in deceptive marketing that promoted the use of addictive painkillers, fueling an epidemic that has resulted in more than 450,000 overdose deaths since 1999.
The company also agreed to abstain from marketing its opioids in the future and to put in place protections aimed at preventing abuse, The Hill reported.
Separately, the company has agreed to pay $260 million over disputes about its pricing of its multiple sclerosis drug Acthar Gel.
Cox Media Group
