Irish drug company Mallinckrodt plc is one of several major opioid manufacturers to file for Chapter 11 bankruptcy protection in the shadow of massive litigation.
According to Bloomberg, the Dublin-based corporation filed on Oct. 12 in Delaware "after getting creditors and claimants to agree on a restructuring plan that hands ownership to bondholders, wipes out shareholders, and sets aside $1.6 billion to resolve all opioid litigation. The filing also will help resolve a U.S. government probe into whether the company defrauded Medicaid by overcharging for Acthar Gel, its top-selling multiple sclerosis drug."
CreditRiskMonitor subscribers would have seen large bankruptcy potential, as the company had been at a FRISK® score of either "2" or "1" since the summer of 2019:
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