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Payment schedule finalized for Mallinckrodt settlement

Staff Report //October 12, 2020//

Payment schedule finalized for Mallinckrodt settlement

Staff Report //October 12, 2020//

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A payment schedule has been finalized for a global settlement reached in February with opioid manufacturer Mallinckrodt.

Mallinckrodt will pay $1.6 billion into a trust that will address the opioid crisis, including $450 million upon emergence from bankruptcy, S.C. Attorney General Alan Wilson announced. The payment schedule also includes $200 million on the first and second anniversary of the company’s emergence from bankruptcy and $150 million on the third through seven anniversaries of bankruptcy emergence.

The settlement with attorneys general for 47 states and U.S. territories includes injunctive relief that will ensure systems are in place to prevent drug misuse, according to a news release from Wilson’s office.

“While the opioid crisis continues to claim the lives of South Carolinians, this improved agreement with MNK represents an important step in my office's ongoing efforts to hold accountable those who are responsible for the epidemic,” Wilson said.

In February, Specialty Generics, Mallinckrodt’s main subsidiary, announced it would file for Chapter 11 bankruptcy protection. Mallinckrodt is now putting the entire company into bankruptcy, requiring the previous agreement be renegotiated, according to the release.

Those ongoing negotiations include details about how much each state will receive and how the money will be distributed.  

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