Mallinckrodt finalizes settlement to resolve Ohio opioid cases
Mallinckrodt, along with its wholly owned subsidiaries, announced that it has executed a definitive settlement agreement and release with Cuyahoga and Summit Counties in Ohio in connection with lawsuits pending in multidistrict opioid litigation, or MDL, in the U.S. District Court for the Northern District of Ohio. The settlement fully resolves the Track 1 cases against all named Mallinckrodt entities that are currently scheduled to go to trial in October in the MDL. The Track 1 cases assert various claims related to the opioid business operated by SpecGx. Under the agreement, Mallinckrodt will pay $24M in cash and provide $6M in generic products, including addiction treatment products. It also will provide a $500,000 payment in two years in recognition of the counties' time and expenses. Further, in the event of a comprehensive resolution of government-related opioid claims, Mallinckrodt has agreed that the two plaintiff counties will receive the value they would have received under such a resolution, less the payments described above. All named Mallinckrodt entities will be dismissed with prejudice from the lawsuit. The value of the settlement should not be extrapolated to any other opioid-related cases or claims.