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Attorney General William Tong


Attorney General Tong Announces $1.6 Billion Settlement with Opioid Manufacturer Mallinckrodt

(Hartford, CT) --Attorney General William Tong today announced a global settlement framework agreement between state attorneys general, local subdivisions, and the opioid manufacturer Mallinckrodt (MNK), its subsidiaries, and certain other affiliates. Under the settlement, MNK will pay $1.6 billion into a trust as described below. MNK is currently the largest generic opioid manufacturer in the United States. As a result of their legal issues and the COVID-19 pandemic, MNK filed for bankruptcy yesterday.

“Mallinckrodt is the nation’s highest volume manufacturer of generic opioids. For years, they balanced their business on the backs of a product they knew was dangerous and deadly. As Mallinckrodt now collapses and files for bankruptcy, this agreement ensures $1.6 billion will be placed in a trust and used to directly address the pain, suffering and trauma caused by the opioid epidemic. We continue to fight to ensure all players in the addiction industry are held fully accountable for the lives lost due to their greed and reckless pursuit of profits,” said Attorney General Tong.

MNK will pay $1.6 billion of cash into a trust that will go toward abating the opioid crisis, including valid claims related to MNK’s role in the opioid crisis raised by non-governmental claimants. MNK will pay the $1.6 billion according to the following schedule:
- $450 million upon emergence from bankruptcy;
- $200 million annually on first and second anniversary of emergence from bankruptcy; and
- $150 million annually on third through seventh anniversaries of emergence from bankruptcy.

MNK also agrees that its opioid business will be subject to stringent injunctive relief that, among other things, will prevent marketing and ensure systems are in place to prevent drug misuse.

Details about how much each state will receive, how the money will be distributed, and how the trust will be administered are all still being negotiated.
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