SEVERE WX : Flash Flood Watch View Alerts

Opioid manufacturer reaches proposed $1.6 billion settlement

A large opioid manufacturer has reached a settlement agreement in principle worth $1.6 billion with attorneys general for 47 states and US territories, accor...

Posted: Feb 26, 2020 9:15 AM
Updated: Feb 27, 2020 1:00 AM

A large opioid manufacturer has reached a settlement agreement in principle worth $1.6 billion with attorneys general for 47 states and US territories, according to a company press release.

Mallinckrodt announced Tuesday that the proposed deal will resolve all opioid-related claims against the company and its subsidiaries if it moves forward. Plaintiffs would receive payments over an eight-year period to cover the costs of opioid-addiction treatments and other needs.

'This court-supervised process is expected to lead to the creation of a trust which, among other things, would establish an abatement fund to offset the expense of helping to combat opioid addiction and providing support to communities impacted by opioid abuse,' the company said in its statement.

'Nothing can undo the devastating loss and grief inflicted by the opioid epidemic upon victims and their families, but this settlement with Mallinckrodt is an important step in the process of healing our communities,' said California Attorney General Becerra in a statement.

He called Malllinckrodt 'the largest generic opioid manufacturer in the United States.'

The company's main subsidiaries, including Specialty Generics, will file for Chapter 11 bankruptcy and the proposed settlement will become effective upon Specialty Generics emergence from bankruptcy.

An estimated 10.3 million Americans aged 12 and older misused opioids in 2018, including 9.9 million prescription pain reliever abusers and 808,000 heroin users, according to the National Survey on Drug Use and Health.

The Centers for Disease Control and Prevention reported more than 70,0000 people died from drug overdoses in 2017, with a prescription or illicit opioid involved in 68% of those deaths.

Mallinckrodt said the company and its subsidiaries will continue operating normally throughout the court-approval process. The company said it expects a 'channeling injunction' that would exempt it from litigation involving Specialty Generics' manufacturing and sale of opioids that occurred prior to or during the time this plan works its way through the court system.

'Reaching this agreement in principle for a global opioid resolution and the associated debt refinancing activities announced today are important steps toward resolving the uncertainties in our business related to the opioid litigation,' said Mark Trudeau, Mallinckrodt's President and CEO.

The company also released its fourth quarter earnings today. In the last quarter of 2019, the company reported net sales of just over $800 million and for 2019 and net sales of $3.163 billion, 'with strong performance across hospital products and the Specialty Generics segment.'

This isn't the first opioid pharmaceutical company that has agreed to a settlement.

Last year, Purdue Pharma, the maker of OxyContin, and Teva Pharmaceuticals agreed to pay over $350 million in lawsuits brought on by the Oklahoma attorney general over allegations the companies contributed to the state's opioid epidemic.

In Ohio, Cuyahoga and Summit counties reached a deal with pharmaceutical giant Johnson & Johnson and four other companies -- McKesson Corp., Cardinal Health Inc., AmerisourceBergen Corp. and Teva Pharmaceutical Industries Ltd. -- for a combined settlement of over $280 million.

New York Coronavirus Cases

County data is updated nightly.

Cases: 2537823

Reported Deaths: 56270
CountyCasesDeaths
Kings33533010862
Queens31620210308
Suffolk2406933616
Nassau2150853300
Bronx2081546756
New York1687034643
Westchester1439382344
Erie1073581959
Richmond893051939
Monroe851201189
Orange57824920
Rockland53317779
Onondaga52624765
Dutchess35811500
Albany31130390
Oneida28916592
Broome24801409
Niagara24280398
Saratoga20545205
Ulster17373280
Schenectady16970229
Rensselaer15006170
Chautauqua12556175
Putnam1255098
Oswego11868115
Chemung11069158
St. Lawrence10742128
Steuben10304174
Ontario9467111
Jefferson903578
Cayuga8745107
Sullivan854183
Wayne830685
Cattaraugus7863118
Genesee7120132
Herkimer6890129
Clinton683740
Tompkins658059
Fulton6465104
Madison6288102
Montgomery6063143
Livingston581171
Warren559484
Cortland541380
Tioga519472
Columbia5053111
Chenango474688
Allegany471598
Washington471468
Otsego462655
Wyoming443458
Greene442587
Orleans441089
Franklin436422
Lewis365338
Delaware360348
Seneca276763
Essex237533
Schoharie233723
Yates167728
Schuyler155817
Hamilton4393
Unassigned14123
Out of NY0319
Utica
Cloudy
52° wxIcon
Hi: 54° Lo: 46°
Feels Like: 52°
Oneonta
Cloudy
55° wxIcon
Hi: 53° Lo: 49°
Feels Like: 55°
Herkimer
Cloudy
52° wxIcon
Hi: 55° Lo: 47°
Feels Like: 52°
Old Forge
Cloudy
52° wxIcon
Hi: 52° Lo: 43°
Feels Like: 52°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
Game Day Deals - New Deals Each Week
Chapter Aesthetic October Giveaway
Cool To Be Kind 2021
Looking for work or looking to hire? Check out the WKTV Job Fair!
Saluting Those Who Are Proud 2 Serve