AG Kaul Announces Updated Settlement with Opioid Manufacturer Mallinckrodt
October 13, 2020
MADISON, Wis. – Attorney General Josh Kaul today announced an update to 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 new 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.
“Families have been devastated by opioid addiction, and our communities need resources to support prevention efforts and treatment. Opioid manufacturers must be held accountable for their role in the opioid epidemic,” said Attorney General Kaul.
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 the proceeds will be distributed, and how the trust will be administered, are all still being negotiated.
Wisconsin DOJ has not filed suit against Mallinckrodt, and because the resolution will occur in a bankruptcy proceeding, the requirements of 2017 Wisconsin Act 369 do not apply.
Press release: https://www.doj.state.wi.us/news-releases/ag-kaul-announces-updated-settlement-opioid-manufacturer-mallinckrodt
More about the Opioid Crisis
- A Medication Rescue for Opioid Overdoses - Corri Hess - Feb 22nd, 2021
- State Receives $10 million in Opioid Crisis Settlement - Jenny Peek - Feb 5th, 2021
- AG Kaul, Gov Evers Announce $573 Million Multistate Agreement with McKinsey & Company for “Turbocharging” the Opioid Epidemic with Purdue Pharma - Josh Kaul - Feb 4th, 2021
- Gov. Evers, DHS Announce Nearly $9 Million Awarded for Drug Treatment Services - Gov. Tony Evers - Jan 14th, 2021
- AG Kaul, Bipartisan AGs Push FDA to Examine Progress in Opioid Fight - Josh Kaul - Jan 11th, 2021
- Milwaukee County Surpasses Last Year’s Record Overdose Deaths - Edgar Mendez - Nov 27th, 2020
- Overdose Responders Struggle Against Rising Deaths - Edgar Mendez - Nov 20th, 2020
- Wisconsin Drug Take Back Collection 1st in the Country; Collects Nearly 90,000 lbs. of Unwanted Medications to Fight the Opioid Epidemic - Josh Kaul - Nov 9th, 2020
- Gov. Evers, DSPS Secretary-designee Crim Announce Wisconsin Enhanced Prescription Drug Monitoring Program Awarded Nearly $2 Million Grant - Gov. Tony Evers - Nov 2nd, 2020
- AG Kaul Announces Updated Settlement with Opioid Manufacturer Mallinckrodt - Josh Kaul - Oct 13th, 2020
Read more about Opioid Crisis here
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