Drugmaker agrees to settle opioid litigation for $1.6 billion

Mallinckrodt Pharmaceuticals today announced an agreement in principle on a settlement to resolve all opioid-related claims against the company in multidistrict litigation against drug makers and others over their alleged role in the opioid crisis. The company said 47 state and territorial attorneys general support the agreement, in which its specialty generics subsidiaries would file for Chapter 11 bankruptcy. Under the proposed settlement, subject to court approval and other conditions, Mallinckrodt would pay $1.6 billion in structured payments after the subsidiaries emerged from Chapter 11, the majority going to a trust that would in part cover the costs of opioid addiction treatment and related efforts, the company said.