Generic opioid manufacturer Mallinckrodt agreed to pay $1.6 billion over eight years to settle thousands of lawsuits brought by local governments holding the company accountable for its role in creating and fueling a national opioid epidemic.
The Ireland-based company was accused of recklessly selling its highly addictive painkillers in communities across the country while downplaying the risks. The company’s specialty generics units, which include Mallinckrodt LLC and SpecGx LLC, will facilitate the settlement through Chapter 11 bankruptcy filings.
Mallinckrodt is the latest opioid company to settle with local governments in the federal opioid multidistrict litigation. OxyContin maker Purdue Pharma, and the Sacklers, the billionaire family that owns the company, reached a settlement deal with about 2,000 local governments in September.
Mallinckrodt was one of the first companies to reach an agreement with two Ohio counties in the first bellwether case, by agreeing to pay $24 million and donate $6 million in generic drugs. Other opioid companies had also reached high-dollar settlements in the case, including payouts of $20.4 million from Johnson & Johnson and $10 million from Endo Pharmaceuticals, bringing the total recovery to $325 million.
The total is still shy of the billions Ohio’s Cuyahoga and Summit counties sought to compensate them for overdose deaths and economic damages caused by the opioid crisis.
Lawyers in Beasley Allen’s Mass Torts Section are representing local governments holding opioid companies accountable for overdose deaths and economic damages in their communities caused by the opioid crisis. Attorneys are also investigating cases of serious injuries and illness – including addiction and overdose – related to opioid use and abuse, as well as cases of Neonatal Abstinence Syndrome (NAS) in babies born to mothers addicted to opioids. For more information, contact Melissa Prickett or Liz Eiland.