After coming out of bankruptcy, Mallinckrodt pays out $260M to settle Acthar Gel lawsuits
Almost 18 months after Mallinckrodt filed for Chapter 11 bankruptcy in October 2020, the company got its reorganization approved — and is paying out $260 million right out of the gate in settlements.
The US Department of Justice said in a statement on Monday that the Staines-upon-Thames-based company is paying out $260 million to settle 2 lawsuits against the pharma, which alleged that Mallinckrodt violated the False Claims Act by underpaying Medicaid rebates due for its multiple sclerosis drug Acthar Gel, and using a foundation as a way to pay illegal co-pay subsidies in violation of anti-kickback laws for that drug.
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