STREAMING NOW: Watch Now

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 3:48 AM
Updated: Feb 26, 2020 10:00 PM

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.

Oregon Coronavirus Cases

Data is updated nightly.

Cases: 361240

Reported Deaths: 4318
CountyCasesDeaths
Multnomah56287712
Washington39109325
Marion37168457
Clackamas30096309
Lane28087306
Jackson23248310
Deschutes20680125
Umatilla14567151
Linn13113132
Douglas12237251
Josephine9451198
Yamhill8820114
Klamath8146122
Polk746481
Malheur568578
Benton559831
Coos510295
Columbia388144
Jefferson381254
Lincoln324139
Union321550
Crook296346
Wasco291941
Clatsop244828
Baker204529
Tillamook198033
Hood River195837
Morrow186623
Curry182725
Harney114727
Grant100213
Lake96012
Wallowa69312
Gilliam1594
Sherman1573
Wheeler1091
Unassigned00

California Coronavirus Cases

Data is updated nightly.

Cases: 4854041

Reported Deaths: 71417
CountyCasesDeaths
Los Angeles148510526549
Riverside3716705041
San Diego3678574183
San Bernardino3586775720
Orange3251235578
Sacramento1596362313
Kern1472941652
Fresno1463182094
Santa Clara1455431897
Alameda1206921415
San Joaquin1027761721
Ventura1010381167
Contra Costa1000181008
Stanislaus862991335
Tulare80375978
San Francisco54440649
San Mateo54168623
Monterey50911586
Solano46063341
Santa Barbara45223523
Merced42422581
Sonoma40997404
Placer39435429
Imperial36071766
Kings32938325
San Luis Obispo29973333
Madera23955285
Shasta23924352
Butte23818273
Santa Cruz21034221
Yolo20397248
Marin17706244
El Dorado17207149
Sutter13937175
Napa12898100
Yuba1011582
Tehama9534110
Humboldt9269109
Nevada916790
Mendocino766787
Lassen758747
San Benito744972
Tuolumne691790
Lake6631105
Amador547364
Siskiyou451246
Glenn438433
Calaveras391481
Del Norte358742
Colusa307618
Inyo214241
Mono16723
Plumas16607
Mariposa133916
Trinity88011
Modoc6895
Sierra1880
Unassigned1460
Alpine1050
Out of CA00
Medford
Cloudy
52° wxIcon
Hi: 63° Lo: 44°
Feels Like: 52°
Brookings
Cloudy
54° wxIcon
Hi: 60° Lo: 48°
Feels Like: 54°
Crater Lake
Cloudy
52° wxIcon
Hi: 42° Lo: 26°
Feels Like: 52°
Grants Pass
Cloudy
52° wxIcon
Hi: 67° Lo: 48°
Feels Like: 52°
Klamath Falls
Cloudy
49° wxIcon
Hi: 56° Lo: 36°
Feels Like: 45°
Lingering showers today
KDRV Radar
KDRV Fire Danger
KDRV Weather Cam

Community Events