Mallinckrodt pays to settle two opioid trials in a week

By Vassia Barba

- Last updated on GMT

(Image: Getty/simpson33)
(Image: Getty/simpson33)

Related tags Opioid Opioid epidemic Mallinckrodt Johnson & johnson

Mallinckrodt announces a settlement agreement on a lawsuit included in the first federal trial over the opioid crisis, shortly after reaching a deal on a previous investigation.

In the most recent case​, the company agreed to pay a total sum of $24m (€21.75) in cash and donate another $6m (€5.4m) in generic products, including addiction treatment products.

Under the settlement with Cuyahoga and Summit Counties, the two Ohio counties in the case, all named entities of Mallinckrodt will be dismissed with prejudice from the lawsuit.

If finalized, the agreement will see one of the largest manufacturers of generic opioids exit the first federal trial over the epidemic that led the US to declare a public health emergency​, with more than 130 deaths daily across the country due to drug overdoses.

The company’s general counsel, Mark Casey, stated the agreement “made sense for all parties.”

The settlement with the two states comes shortly after the company announced​ the completion of a previous agreement to pay $15.4m to resolve a civil false claims act investigation on Questcor's activities.

The investigation from the US Department of Justice concerning Questcor, a Mallinckrodt subsidiary, was first filed in 2012.

Bloomberg reported​ last week that the company was exploring the option to file for bankruptcy, causing Mallinckrodt shares to drop by almost 40%.

Wider than one company

A number of pharmaceutical companies are facing lawsuits on the role that they have played in the opioid crisis in the US, with civil, public and private organizations accusing them of unethical marketing and failure to monitor drug misuse.

In late August​, Johnson & Johnson was ordered to pay $572m to the state of Oklahoma, after a court judgement found against the pharmaceutical company for its role in the opioid crisis.

Earlier this year​, Insys announced it would file for bankruptcy, following the settlement of a legal case regarding its sales tactics for its opioid-based pain killer.

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