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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