Weekly Mass Torts Bulletin 2023-September-25
Mallinckrodt Considers Sale Of Opioid Business
Bankrupt pharmaceutical company Mallinckrodt is reportedly in discussions with major investors regarding the potential sale of some or all of its business divisions, which may result in its withdrawal from the opioid industry.
Investors who are positioned to gain control through the company's ongoing bankruptcy proceedings are proposing that Mallinckrodt consider splitting up its business segments, as indicated in the report.
Mallinckrodt has not yet provided a response to requests for comment. The Ireland-based company filed for bankruptcy in the United States for the second time just last month, as part of a restructuring plan aimed at reducing its obligations by $1 billion to victims of the U.S. opioid crisis.
Mallinckrodt, a manufacturer of both branded and generic drugs, initially filed for bankruptcy in 2020 to address its substantial debt burden, legal disputes related to its marketing of highly addictive generic opioids, and controversies surrounding its drug pricing.
In its efforts to emerge from bankruptcy in June 2022, the company, while denying any wrongdoing, agreed to a $1.7 billion settlement to resolve approximately 3,000 lawsuits alleging deceptive marketing practices to boost opioid sales.
Additionally, Mallinckrodt disclosed last month in filings with the Securities and Exchange Commission that it had received a grand jury subpoena from the U.S. Attorney's Office for the Western District of Virginia, which sought information about the company's reporting of suspicious opioid orders to the U.S. Drug Enforcement Administration.
Mallinckrodt filed for bankruptcy protection over three years ago, and it successfully exited Chapter 11 last year after reaching a nationwide settlement of $1.7 billion as part of its bankruptcy reorganization plan.
Due to concerns from its lenders regarding a $200 million payment associated with opioid-related lawsuits, the company announced in June that it was exploring the possibility of a second bankruptcy filing, along with other potential alternatives.
Numerous cities and counties are poised to receive substantial funds from Mallinckrodt as part of settlements related to the opioid crisis. Notable examples include Kansas, Washington, and New York, which are awaiting payments of $6 million, $18 million, and $58.5 million, respectively.
Lenawee County Hosting Virtual Book Read To Combat Opioid Crisis
Lenawee County is taking steps to raise opioid awareness about substance use disorder (SUD), reduce stigma, and promote recovery within the community.
To achieve these goals, the county is organizing a virtual community book reading event featuring "The Least of Us" by Sam Quinones. This event will include a virtual discussion via Zoom from 6 to 7:30 p.m. on October 2, and the book is readily available at local libraries and major online book retailers.
In "The Least of Us," Quinones delves into the aftermath of the opioid epidemic, providing a follow-up to his best-selling book, "Dreamland." He shares stories of community recovery and repair. In "Dreamland," Quinones traveled across Mexico and the United States to portray the opioid epidemic. He was among the first to recognize the emerging dangers, including the production of synthetic drugs by a new generation of drug lords. These traffickers mixed fentanyl, an extremely potent painkiller, into substances like cocaine, methamphetamine, and counterfeit pills, resulting in tens of thousands of deaths. Simultaneously, Mexican traffickers made methamphetamine more affordable and potent, contributing to widespread mental illness and homelessness in the U.S.
This community book reading coincides with the efforts of Lenawee County's Community Development Coordinator, who is collaborating with community partners and local universities to develop the Lenawee County Opioid Action Plan. This plan will determine how the county allocates funds received from opioid settlement lawsuits against major pharmaceutical companies, manufacturers, and retailers. The plan's objectives include reducing overdose deaths, establishing sustainable care for those with SUD, and enhancing the quality of life for affected individuals. The coordinator has engaged with organizations like the Michigan Association of Counties, conducted community surveys, and hosted town hall meetings as part of this initiative.
Lenawee County has already received over $500,000 from settlements related to a class action lawsuit against major pharmaceutical distributors and manufacturers. It is expected to receive $1,570,858 from a settlement involving pharmacy chains and additional manufacturers, with funds continuing to be disbursed through 2040.
While making progress, Lenawee County acknowledges that it lags behind neighboring counties like Washtenaw in terms of facilities, programs, and services for individuals with SUD and co-occurring disorders.
In addition to these efforts, a new Lenawee County chapter of the nonprofit organization Families Against Narcotics (FAN) has recently been established. FAN, originally based in Macomb County, focuses on educating the community about addiction, reducing stigma surrounding SUD, and working to prevent narcotics-related deaths and recidivism within the criminal justice system for those with SUD. FAN hosts public forums at 7 p.m. on the fourth Tuesday of each month at the Adrian District Library in downtown Adrian. These forums provide education on addiction and recovery and offer support and fellowship for individuals and families affected by SUD, all free of charge.